☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted May 5, 2021 11:54:07 AM

I contributed $6000 to traditional IRA in 12/2020 and converted to ROTH in 01/2021. Do I report this $6000 in 2020 or 2021 tax return?

I contributed $6000 to traditional IRA in 12/2020 and converted to ROTH in 01/2021. Do I report this $6000 in 2020 or 2021 tax return? based on https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-conversion/00/25567, there are two steps for endtering backdoor ROTH IRA. Do I have to do step 1 in 2020 tax return and step 2 in 2021 or can I do both steps in 2021 tax return?

0 3 482
3 Replies
Expert Alumni
May 9, 2021 8:59:19 AM

Yes, you will enter steps1, the contribution, on your 2020 tax  and step 2, the conversion, on your 2021 tax return.

 

To enter the nondeductible contribution to the traditional IRA on your 2020 tax return:

  1. Open your return
  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.

 

Next year on your 2021 tax return to enter the 1099-R conversion: 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “1099-R”
  3. Click on “Jump to 1099-R”
  4. Click "Continue" and enter the information from your 1099-R
  5. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  6. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
  7. On the "Your 1099-R Entries" screen click "continue"
  8. Answer "yes" to "Any nondeductible Contribution to your IRA?"
  9. Answer the questions about the basis and value

Level 2
May 11, 2021 4:55:26 PM

Thank you for your reply. I can follow all the steps except for step 10, which did not show up in my turbotax. instead, it says "Income too high to deduct an IRA contribution". I don't know how I get to step 10 to answer YES for making part of my IRA contribution nondeductible

"

Expert Alumni
May 12, 2021 3:48:44 PM

You may not meet the qualification to have any of it deductible. It may all be nondeductible. This would keep the question from popping up.  See About Form 8606, Nondeductible IRAs | IRS