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posted Jun 4, 2019 2:37:26 PM

Does anyone have instructions for entering info on backdoor IRA -Roth in Turbotax? Opened nondeductible and reported last year. Converted this year. TT figures a penalty.

Not eligible for IRA or Roth - income. For backdoor Roth IRA  opened a non-deductible IRA  for wife in Jan 2018- reported it on 2017 return. Converted to  Roth  in Dec 18. Only IRA in her name. TurboTax  figures a penalty for her Roth conversion. Can someone help with how to enter this in TurboTax? Thanks!

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Expert Alumni
Jun 4, 2019 2:37:27 PM

Please make sure you did not enter anything “Traditional and Roth IRA Contributions" section in regards to this conversion since you reported the non-deductible IRA contribution already in 2017.

To enter the 1099-R distribution/conversion: 

  1. Click "Wages & Income" on the top
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  9. Then choose “I converted all of this money to a Roth IRA account.”
  10. On the "Your 1099-R Entries" screen click "continue"
  11. Answer "yes" to "Any nondeductible Contribution to your IRA?"
  12. Answer the questions about the basis