I am trying to enter a backdoor roth contribution and the instructions on the help page does not match the workflow

[katie-ann700]

The workflow is not allowing me to make the traditional contribution non-deductible

[MarilynG1]

Reporting a backdoor Roth conversion is a two-step process.  Enter the non-deductible contribution to a traditional IRA first. 

You’ll receive a Form 1099-R with code 2 in box 7 (or code 7 if your age is over 59 ½) in the year you make your Roth conversion. You should report your conversion for the year you receive this 1099-R:

• If you received this form in 2022, complete both steps to report it on your 2022 taxes
• If you'll receive this form in 2023, wait to report it on your 2023 taxes. In this case, only complete Step 1 below for your 2022 taxes. You’ll complete both steps next year when filing your taxes for 2023

Click this link for the steps on Entering a Backdoor Roth Conversion.

[katie-ann700]

I completed this step in addition to the other one provided however the workflow in the system is incorrect

[RobertB4444]

@katie-ann700  please clarify - which step is not working correctly for you?

[katie-ann700]

I am using the "how to" guide "HOW DO I ENTER A BACKDOOR ROTH IRA CONVERSION?"

All steps are correct until I arrive at Step number 9. It says: "Answer No on the screen Did You Change Your Mind?, then answer the questions on the following screens"

What displays instead is: "Tell Us How Much You Transferred?" question. I have follow the workflow a multitude of ways and I always arrive at "you exceed the income limits." 

[DanaB27]

It seems you answered "Yes" on the “Did You Change Your Mind?” screen instead of "No". Don't enter anything on the screen "Tell Us How Much You Transferred?" (delete any entry on that screen) and then continue. You should get to the correct screens that way.

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 contribution before this tax year.
9. Enter your basis in the Traditional IRA from your 2021 Form 8606 line 14 (if you had a basis in the prior year)
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 warning and then a screen saying $0 is deductible).

To enter the 1099-R 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 "Review your 1099-R info" 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 from line 14 of your 2021 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

@katie-ann700