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Did the Backdoor Roth IRA, but getting taxed the full amount of the conversion. My 1099-R is showing the same gross distribution/taxable amount. Am I missing something?

 
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2 Replies

Did the Backdoor Roth IRA, but getting taxed the full amount of the conversion. My 1099-R is showing the same gross distribution/taxable amount. Am I missing something?

1099-R is correct to show amounts in both boxes 1 & 2a and note the "taxable amount not determined" box will be checked and Form 8606 will determine how much to tax.  Distribution code should be 2 and IRA/SEP/SIMPLE checked, make sure you input the 1099-R as reported.

 

See full steps here.  Backdoor Roth consists of 2 separate transactions you need to input both the contribution under Deductions & Credits section for IRAs; and the 1099-R for the conversion under Wages and Income.  

 

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...

 

If you are getting fully taxed then you likely either didn't identify the 1099-R as a Roth conversion in the questions after the 1099-R summary; or you didn't input the non-deductible contribution to your Traditional IRA.   You should review the outcome on Form 8606.

 

 

AnnetteB6
Employee Tax Expert

Did the Backdoor Roth IRA, but getting taxed the full amount of the conversion. My 1099-R is showing the same gross distribution/taxable amount. Am I missing something?

If your non-deductible Traditional IRA contribution was made in the same year (2025) as your conversion, then be sure that you enter the non-deductible contribution into your return.  

 

But, if the non-deductible contribution was made in an earlier year and it was not reported on your return, then you may need to file Form 8606 now to report that contribution and then be sure to enter the basis of the Traditional IRA in your 2025 return.  That will make the conversion non-taxable.

 

Take a look at the section If your conversion contains contributions made in 2025 for 2024 in the following TurboTax help article for more guidance:

 

How do I enter a backdoor Roth IRA conversion?
 

@sean22king 

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