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IM2024
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I am trying to enter a backdoor Roth conversion from my non-deductable IRA and it shows me that a portion of it is taxable, about half of it. Which entry was wrong?

I follow the 2-step process that TT suggested. What I check in tools 4a shows the amount but 4b is not 0.
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2 Replies

I am trying to enter a backdoor Roth conversion from my non-deductable IRA and it shows me that a portion of it is taxable, about half of it. Which entry was wrong?

assuming by 2 step process you mean this

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...

 

Check form 8606 to see what is happening - if you're getting "half" the backdoor as taxable rather than fully taxable or fully non-taxable, that probably means that you have pre-tax balance in your Trad IRAs so Form 8606 is calculating the conversion as being partially taxable (pro rata calculation).  Did you have a MV in your Trad IRAs as of 12/31/25?

I am trying to enter a backdoor Roth conversion from my non-deductable IRA and it shows me that a portion of it is taxable, about half of it. Which entry was wrong?

If your Traditional IRA shows earnings over time, regardless of non-deductible contributions,

you will lose the ability to do a tax-free Roth IRA backdoor contribution.

 

@IM2024 

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