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Level 2
posted Apr 14, 2025 10:01:26 AM

Help with Backdoor Roth Conversion and form 8606

Can someone provide some help?....

 

This is my 1099-R from Vanguard...

 

  1    Gross Distribution:                                         6,298,87

  2    Taxable Amount:                                             6,298.87

  2a  Taxable Amount Not Determined                            X

         Total Distribution                                                         X

  7     Distribution Code(s)                                                   2

         IRA/SEP/SIMPLE                                                          X

16    State Distribution                                            6,298.87

 

 On the 1040, both lines 4a & 4b are  6,300

 

  This conversion is all post-tax and there is no balance in my traditional,

  yet TurboTax is calculating Tax on the 1099-R and it shouldn't.

 

 Thanks!

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1 Replies
Expert Alumni
Apr 14, 2025 10:08:00 AM

You entered the 1099-R but are missing the 8606 with the basis that has already been taxed. Once you enter the basis, it won't be taxable.

You need to delete the 1099-R, enter the 8606  or the contribution that isn't deductible, and then re-enter the  1099-R.

Good catch!