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How do I enter a backdoor Roth IRA conversion, when I am rolling over multiple year's worth of traditional IRA contributions?

OK, so here's what I did.

  1. Over the past few years I contributed to a traditional IRA.  Those contributions totaled $9,250.  I did not take tax deductions on that money (I made over the limit).  I have form 8606s for those years. 
  2. In 2021 I made a $6,000 deposit towards my 2020 limit at the start of the year, and 6,000 later on for my 2021 contribution. Again, I was over the income limit.  I don't have a form 8606 for this because I am doing the taxes now.  
  3. In 2021 I converted to a Roth IRA, and the total amount converted was $28,531, my contributions totaled $21,250
  4. How do I enter all of this into Turbo Tax? The link here from the Turbo Tax folks seems to only apply if you only have one year's worth of money rolling over.  Am I supposed to just say that the full $21,250 was contributed this year? 

When I look up tutorials it says to enter the contributions under the Deductions & Credits section, but that appears to be ONLY for 2021, these contributions go back years. Can someone who has done this before in Turbo Tax please help? 

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1 Best answer

Accepted Solutions
FangxiaL
Expert Alumni

How do I enter a backdoor Roth IRA conversion, when I am rolling over multiple year's worth of traditional IRA contributions?

 

Here is how to enter your IRA contribution and Roth conversion:

Follow the two-step process:

 

Step 1: Enter the Non-deductible contribution to a Traditional IRA:

 

  1. Open or continue your return
  2. In the search box, type ira contributions and select the Jump to link in the search results
  3. Select Traditional IRA on the Traditional IRA and Roth IRA screen and Continue
  4. Answer No to Is this a Repayment of a Retirement Distribution?
  5. On the Tell Us How Much You Contributed screen, enter the amount contributed and continue
    • Enter $6,000 for Your total 2021 traditional IRA contributions
  6. Answer No on the Did You Change Your Mind? screen
  7. Answer No on Any Excess IRA Contributions Before 2021?
  8. Answer Yes, I made and tracked nondeductible contributions to my IRA, or No, I did not make and track nondeductible contributions to my IRA. If you don't have any other Traditional IRA accounts, you can answer Yes
  9. Enter $15,250 for Total Basis as of December 31, 2020 on the next screen
  10. Answer the questions on the following screens, until you reach Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible and enter $6,000 in the box. 

 

Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA

 

 

 Inside TurboTax, search for 1099-r and select the Jump to link in the search results

  1. Answer Yes to Did you get a 1099-R in 2021?, then Continue
    • If you land on Your 1099-R Entries screen, select Add Another 1099-R
  2. Select how you want to enter your 1099-R (import or type it in myself) and follow the instructions
  3. Answer None of these apply when you reach the screen Do any of these situations apply to you?
  4. Select I converted some or all of it to a Roth IRA on the Tell us if you moved the money through a rollover or conversion screen
  5. Next, choose Yes, all of this money was converted to a Roth IRA

To check the results of your backdoor Roth IRA conversion, see your Form 1040:

  1. On the left side of your screen, select Tax Tools >> Tools to open the Tools Center
  2. In the Tool Center, select View Tax Summary
  3. On the left side of your screen, select Preview my 1040
    • Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a  as IRA distributions
    • The taxable amount should be $7,281 because you had earnings between the time you contributed to your Traditional IRA and the time your converted it to Roth IRA, then the earnings would be taxable
    • Schedule 1, Line 20 IRA deduction, should be blank
  4. Select Back on the left side of your screen to return to where you left off in TurboTax
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

2 Replies
FangxiaL
Expert Alumni

How do I enter a backdoor Roth IRA conversion, when I am rolling over multiple year's worth of traditional IRA contributions?

 

Here is how to enter your IRA contribution and Roth conversion:

Follow the two-step process:

 

Step 1: Enter the Non-deductible contribution to a Traditional IRA:

 

  1. Open or continue your return
  2. In the search box, type ira contributions and select the Jump to link in the search results
  3. Select Traditional IRA on the Traditional IRA and Roth IRA screen and Continue
  4. Answer No to Is this a Repayment of a Retirement Distribution?
  5. On the Tell Us How Much You Contributed screen, enter the amount contributed and continue
    • Enter $6,000 for Your total 2021 traditional IRA contributions
  6. Answer No on the Did You Change Your Mind? screen
  7. Answer No on Any Excess IRA Contributions Before 2021?
  8. Answer Yes, I made and tracked nondeductible contributions to my IRA, or No, I did not make and track nondeductible contributions to my IRA. If you don't have any other Traditional IRA accounts, you can answer Yes
  9. Enter $15,250 for Total Basis as of December 31, 2020 on the next screen
  10. Answer the questions on the following screens, until you reach Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible and enter $6,000 in the box. 

 

Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA

 

 

 Inside TurboTax, search for 1099-r and select the Jump to link in the search results

  1. Answer Yes to Did you get a 1099-R in 2021?, then Continue
    • If you land on Your 1099-R Entries screen, select Add Another 1099-R
  2. Select how you want to enter your 1099-R (import or type it in myself) and follow the instructions
  3. Answer None of these apply when you reach the screen Do any of these situations apply to you?
  4. Select I converted some or all of it to a Roth IRA on the Tell us if you moved the money through a rollover or conversion screen
  5. Next, choose Yes, all of this money was converted to a Roth IRA

To check the results of your backdoor Roth IRA conversion, see your Form 1040:

  1. On the left side of your screen, select Tax Tools >> Tools to open the Tools Center
  2. In the Tool Center, select View Tax Summary
  3. On the left side of your screen, select Preview my 1040
    • Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a  as IRA distributions
    • The taxable amount should be $7,281 because you had earnings between the time you contributed to your Traditional IRA and the time your converted it to Roth IRA, then the earnings would be taxable
    • Schedule 1, Line 20 IRA deduction, should be blank
  4. Select Back on the left side of your screen to return to where you left off in TurboTax
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

How do I enter a backdoor Roth IRA conversion, when I am rolling over multiple year's worth of traditional IRA contributions?

This worked, thank you!

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