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Level 2
posted Mar 30, 2024 2:12:10 PM

I backdoored trad to roth IRA. 1099-R line 7 has code 2 and IRA/SEP/SIMPLE, is this an "early distribution for a qualified situation"? I'm under 59.5, $0 in trad IRA

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1 Replies
Expert Alumni
Mar 31, 2024 7:18:42 AM

That is correct.  When you are under age 59 1/2 and make a Roth IRA conversion, code 2 is used on Form 1099-R.

 

Follow these steps to input your Form 1099-R reporting the conversion: 

 

  1. Select Wages & Income
  2. Locate the Retirement Plans and Social Security section and select Show more, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R)
  3. Answer Yes to Did you get a 1099-R in 2023?, then Continue.
    • If you land on the screen, Your 1099-R Entries, select Add Another 1099-R
  4. Select how you want to enter your 1099-R (import or type it in yourself) and walk through the interview questions.
  5. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
  6. Select I converted some or all of it to a Roth IRA and Continue
  7. Next, choose Yes, all of this money was converted to a Roth IRA and click Continue
  8. Continue answering questions until you come to the screen, Review your 1099-R info.

For more information, please see this TurboTax Help Article: How do I enter a Backdoor Roth IRA conversion?