I did a "mega back door" Roth IRA contribution in 2021 (limit $58,000) but Turbotax says the limit is $6000. How do I enter in the mega back door Roth into turbotax ?

I made a non-deductible $20,000 contribution to my 401K in 2021 and then transferred it immediately to my brand new Roth IRA at Fidelity (I have another Roth IRA from many years ago). This is the so-called “mega back door” IRA and I can contribute up to $58,000 per year. I entered the relevant 1099-R into Turbotax and it says my Roth IRA contribution is over the allowed limit of $6000 and I must pay a penalty. How can I get turbotax to recognize the higher $58000 limit and NOT use the $6000 limit ?

646

Expert Alumni

Apr 2, 2022 4:34:03 AM

To verify, you did not enter anything under IRA contributions, correct? If you did then delete this entry.

You only enter your Form 1099-R for this conversion and answered the follow-up questions to indicate it converted to the Roth IRA:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
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”

Level 15

Apr 2, 2022 5:17:47 AM

As @DanaB27 suggests, you've mistakenly entered this as a Roth IRA contribution. You did not make a regular Roth IRA contribution, so go back and remove that entry you made under Deductions & Credits. Only ther the Form 1099-R and in the follow-up questions indicate that you rolled the money over to a Roth IRA.

New Member

Apr 2, 2022 10:10:38 AM

Thanks @DanaB27 @dmertz , I think I did it :

Do not do anything under : "Under Deductions -> Retirement and Investments -> Traditional and Roth IRA contributions"

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I did a "mega back door" Roth IRA contribution in 2021 (limit $58,000) but Turbotax says the limit is $6000. How do I enter in the mega back door Roth into turbotax ?