How to enter Traditional to Roth conversion Rollover contribution in the turbotax online version ?

[PT313]

Hi MacUser22,

Following your link, I found the 8606 form of all these years.

After read the instruction, I know how to enter the 8606 form now.

Thanks for your help!

[PT313]

Hi Dona,

Thanks for helping.

As I have reported that during the processes to creating 1099R, (many of them)  I've never seen that page asking for "Any nondeductible Contributions to your IRA?" If I had seen this page, there would be no this problem. 

I already figured out how to enter the 8606 manually. I shall reboot my computer, restart the TurboTax and update to the newest version again. Then I shall start a new tax return. If I will be luck to see this page and get the 8606 in the interview process, I shall follow. Otherwise I just manually open a form 8606 and enter the numbers. Hopefully TurboTax will take the form and calculate the tax for me correctly.

Thanks to all who joined this discussion.

Good Superball Time!!

[PT313]

Oh Dona, I forgot to answer your question regarding clicking on "continue". Yes, of cause I had to click on "continue" to get the 1099-R created. I have successfully created 5 1099-R forms in various ways. However, none of their creation processes got me into the 8606 form because I have never encountered the page which asking "Any nondeductible Contributions to your IRA?" . 

[VolvoGirl]

But did you keep going to the very end of the whole 1099R section?   There are several more screens to keep going through.   People sometimes stop to soon.   It might not be after each 1099R entry but at the end after you entered all the 1099R .   

[PT313]

Hi VolovGirl ,

 Yes, You're right!

After the 1099R is created, all 1099R forms are listed in the same page.  After that, clicking on the "continue", a couple of pages later, the "non-deducted IRA contribution" page finally pop up and one can say yes to open the 8606 form.

I think, this page didn't pop up for me at the beginning, (I did went through all the processes until the Deduction and Credit, even tried to make the TurboTax take the conversion as a contribution for the credit, but failed) may be because I hadn't find the "Convert into ROTH drop down", there was no conversion recoded. After that I created many 1099R forms from  various ways, but I was too frustrated to go through any further. Once I saw the forms appeared in the summarized page, I thought it's done!

Anyway, I have no more problem in this issue now.

Hey, thanks  all for the help!

[nyin]

How come this distribution be reported on 1040-4b as taxable income? I already made this contribution/conversion from my post tax money. Then why should I pay tax for the second time for the same money?

[SweetieJean]

@nyin Are you looking at the TT Income Summary?  That shows only the gross (not taxable) amounts, and is just FYI.

[DanaB27]

Please be aware, if you had earnings then these will be taxable on line 4b. Also, if you had a value in any traditional, SEP or SIMPLE IRAs on December 31, 2021 with pre-tax contributions then each distribution will have a part allocated to the basis and a part allocated to the pre-tax funds. Therefore, each distribution will be partly taxable.

Please review the steps below to enter backdoor Roth contribution correctly.

To enter the nondeductible contribution to the traditional IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions”
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
9. If you had a basis in the Traditional IRA before then enter the amount.
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a screen saying $0 is deductible).

To enter the 1099-R distribution/conversion: 

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Your 1099-R Entries" screen click "continue"
6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis and value

@nyin

[alan_darlene]

Which Turbotax version did you use for conversion of IRA from traditional to roth? Deluxe? Home/Business?

[alan_darlene]

Which Turbotax version )Premier, personal/business, etc) is best for a conversion of IRA from traditional to roth? I will need to pay on the taxes from 2021 conversion. 

[MarilynG]

Any TurboTax product (online or desktop) will handle the conversion from Traditional IRA to Roth.

Click this link for the steps on Traditional IRA to Roth Conversions. 

If you want to make a non-taxable Roth conversion, you can make a non-deductible IRA contribution and convert to a Roth. 

Click this link for steps on How to Enter a Back-Door Roth Conversion. 

@alan_darlene

[Jeratwo]

Replying to macuser_22: Great, this is EXACTLY what I did when I recharacterized from Roth to Traditional, HOWEVER, silly me, I then also did a ROTH Conversion from that IRA back to the ROTH again.  How/where would I enter this in Turbo Tax please, as it does not seem to offer this option so I'm stuck?  ...and yes, it was a stupid thing to do on my part, as I was unaware of the income limitations on the deductibility of Traditional IRAs when I did the initial Recharacterization :(

Your help would be so appreciated!

[dmertz]

@Jeratwo , the Roth conversion is an entirely separate transaction, reported by entering into TurboTax the Form 1099-R that reports the distribution that was converted to Roth from the traditional IRA.  If the Roth conversion was done in 2022 it will be reportable on your 2022 tax return and has nothing to with your 2021 tax return.

[Jeratwo]

Hmm, this is strange because the ROTH Conversion form I filled in asked what tax year, and I filled 2021, even thought the conversion was performed in April 2022 (5 days ago).  They (Ameritrade) also said that a recharacterization from a Traditional IRA to a ROTH is just called a Roth Conversion but said they are otherwise the same thing.  It was difficult to find accurate info online, so I figured I could trust them.  Were they incorrect on both accounts?  

[dmertz]

"They (Ameritrade) also said that a recharacterization from a Traditional IRA to a ROTH is just called a Roth Conversion but said they are otherwise the same thing."

What the person at Ameritrade told you is nonsense.  That person was inadequately trained.  A recharacterization and a Roth conversion are entirely different transactions.

"the ROTH Conversion form I filled in asked what tax year, and I filled 2021"

That would make sense for a recharacterization but not for a Roth conversion.  Hopefully Ameritrade did not process a recharacterization instead of a Roth conversion.  You need to check that.  The only recharacterization that should have been done is the recharacterization from Roth to traditional.  A second recharacterization, back to Roth, would be an impermissible revocation of the first recharacterization.