Form 8606 - How to report the immediate backdoor conversion event (no 1099-R)?

[easyxpress]

Today is April 4, 2024, I made a non-deductible $7500 contribution for 2023 to my Traditional IRA and immediately I backdoor converted the entire amount of $7500 to Roth IRA.

In this case, I would need to report both the non-deductible contribution (Traditional IRA) and backdoor conversion (Roth IRA) using the 2023 Form 8606 because these two actions are for the Tax Year 2023 although they happened in April of 2024.

In TurboTax preparing the 2023 tax return, I was able to trigger Form 8606 to report the non-deductible contribution on Part I of Form 8606. However, I am unable to report the backdoor conversion (Part II of Form 8606) as it appears that TurboTax requires a 1099-R for the Part II. Obviously, I won't have the 1099-R until next year 2025. And it seems wrong to me if I create a new 1099-R on my own, as I will receive an offical one next year.

Also, when I overrided Part II of Torm 8606, TurboTax flags as errors and it won't be able to file electronically. 

Potentially, I can mail in the physical Form 8606. But I'd like to find out the best way to handle this situation in TurboTax?

[fanfare]

sorry, you cannot report the Roth "contribution" on 2023 tax return since you did it in 2024.

enter only the non-deductible election at this time.

@easyxpress 

[AnnetteB6 · Accepted solution]

You can only report the first half of the back door Roth IRA conversion on your 2023 tax return.  The second half will be on your 2024 tax return.

You mentioned that you have already entered the non-deductible Traditional IRA contribution as part of your 2023 return.  That is all you can report at this time.  

When you convert a Traditional IRA to a Roth IRA, the conversion is reported on your return based on the calendar date of the conversion.  It is not associated with a particular tax year (like 2023).  Since the conversion took place in 2024, it will be reported on your 2024 tax return after you have received the 2024 Form 1099-R showing the Traditional IRA distribution.  

@easyxpress