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Returning Member

I contributed and then preformed 2019 Backdoor Roth IRA in Jan 2020. How to report Backdoor Roth IRA for 2019?

I performed 2019 backdoor Roth IRA ($6000) in Jan, 2020. However, my broker did not give 1099-R this year but said it will be ready this time next year. I have questions for the following:

1. how to report Backdoor Roth IRA in tax return 2019?

2. I plan to convert another $6000 in 2020 backdoor Roth IRA, is any I should be aware in tax return 2020?

Thanks a lot!

3 Replies
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Level 15

I contributed and then preformed 2019 Backdoor Roth IRA in Jan 2020. How to report Backdoor Roth IRA for 2019?

On your 2019 tax return you'll report only the traditional IRA contribution for 2019.

 

On your 2020 tax return you'll report the traditional IRA contribution for 2020 and the Roth conversions performed in 2020.  If the 2019 and 2020 contributions are made to the same traditional IRA you'll receive a single 2020 Form 1099-R totaling the two distributions from the traditional IRA in 2020.

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Returning Member

I contributed and then preformed 2019 Backdoor Roth IRA in Jan 2020. How to report Backdoor Roth IRA for 2019?

Thanks for your reply. Hope to get your details.

 

1. On your 2019 tax return 

  • the traditional IRA contribution for 2019: $6000. How did I perform that in TurboTax (CD)? How about 8606 form and do I need to take care it by myself?
  • I have some interests ($0.94) left in traditional IRA when converting $6000 to Roth, how do I report it?

2. On your 2020 tax return

  • If I continuously plan to do Backdoor Roth IRA ($6000), do I understand correctly?
    • the traditional IRA contribution for 2020: $6000
    • the Roth conversions performed in 2020: $12000

 

Highlighted
Level 15

I contributed and then preformed 2019 Backdoor Roth IRA in Jan 2020. How to report Backdoor Roth IRA for 2019?

On your 2019 tax return, enter the your $6,000 traditional IRA contribution under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.  

 

Regarding your 2020 tax return, yes, you'll enter your $6,000 contribution for 2020.  Regarding the conversions in 2020, you can convert whatever amount is in your traditional IRA, including the $0.94 of interest, so your conversions in 2020 might total $12,000.94.  That will round to $12,001 in TurboTax and the extra $1 will be includible in taxable income (probably with that $1 causing no change in your tax liability).