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I had a backdoor roth IRA contribution and also rollover over my previously employers' 401k plan into a rollover IRA and converted a portion of the rollover IRA into the roth IRA in 2018. How would I enter the information in TurboTax? Thanks!

 
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I had a backdoor roth IRA contribution and also rollover over my previously employers' 401k plan into a rollover IRA and converted a portion of the rollover IRA into the roth IRA in 2018. How would I enter the information in TurboTax? Thanks!

Ok ... making a backdoor contribution in the same year you only converted a portion of the 401K roll was unwise at best ... you no longer can do a clean backdoor conversion ... the form 8606 must now be used ...

To enter the nondeductible contribution to the traditional IRA:

1.    Open your return

2.    Click “Deductions &Credits” on the top

3.    Click "I'll choose what to work on"

4.    Scroll down to “Traditional and Roth IRA Contributions” and click “Start

5.    Select “traditional IRA

6.    Answer “No” to “Is This a Repayment of a Retirement Distribution?

7.    Enter the amount you contributed

8.    Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen

9.    Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes

10.  If you had a basis in the Traditional IRA before then enter the amount.

11.   On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

 

To enter the 1099-R distribution/conversion: 

1.    Click "Personal Income" on the top

2.    Click "I'll choose what to work on"

3.    Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)

4.    Answer "Yes" to the question "Did You Have Any of These Types of Income?"

5.    Click "I'll Type it Myself"

6.    Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."

7.    Click "Continue" and enter the information from your 1099-R

8.    Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account

9.    Then choose “I converted all of this money to a Roth IRA account.”

10.  On the "Your 1099-R Entries" screen click "continue"

11.   Answer "yes" to "Any nondeductible Contribution yo your IRA?"

12.   Answer the questions


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3 Replies

I had a backdoor roth IRA contribution and also rollover over my previously employers' 401k plan into a rollover IRA and converted a portion of the rollover IRA into the roth IRA in 2018. How would I enter the information in TurboTax? Thanks!

Ok ... making a backdoor contribution in the same year you only converted a portion of the 401K roll was unwise at best ... you no longer can do a clean backdoor conversion ... the form 8606 must now be used ...

To enter the nondeductible contribution to the traditional IRA:

1.    Open your return

2.    Click “Deductions &Credits” on the top

3.    Click "I'll choose what to work on"

4.    Scroll down to “Traditional and Roth IRA Contributions” and click “Start

5.    Select “traditional IRA

6.    Answer “No” to “Is This a Repayment of a Retirement Distribution?

7.    Enter the amount you contributed

8.    Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen

9.    Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes

10.  If you had a basis in the Traditional IRA before then enter the amount.

11.   On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

 

To enter the 1099-R distribution/conversion: 

1.    Click "Personal Income" on the top

2.    Click "I'll choose what to work on"

3.    Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)

4.    Answer "Yes" to the question "Did You Have Any of These Types of Income?"

5.    Click "I'll Type it Myself"

6.    Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."

7.    Click "Continue" and enter the information from your 1099-R

8.    Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account

9.    Then choose “I converted all of this money to a Roth IRA account.”

10.  On the "Your 1099-R Entries" screen click "continue"

11.   Answer "yes" to "Any nondeductible Contribution yo your IRA?"

12.   Answer the questions


I had a backdoor roth IRA contribution and also rollover over my previously employers' 401k plan into a rollover IRA and converted a portion of the rollover IRA into the roth IRA in 2018. How would I enter the information in TurboTax? Thanks!

Thank you so much for your advice! This is really helpful!

Just one more question though--as I was following the instructions above, I couldn't get to the "Choose Not to Deduct IRA Contributions” that you mentioned in #11 under Deductions and Credits. Any thoughts about where/how I can get to that page? I've completed everything else and for some reason, it seems like I am being taxed for both my backdoor contribution of $5,500 in addition to the portion of my conversion into Roth IRA. I am thinking it could be because I could input the nondeductible amount? Thank you!
dmertz
Level 15

I had a backdoor roth IRA contribution and also rollover over my previously employers' 401k plan into a rollover IRA and converted a portion of the rollover IRA into the roth IRA in 2018. How would I enter the information in TurboTax? Thanks!

If due to modified AGI and workplace retirement plan participation your traditional IRA contribution is not deductible, TurboTax will not ask the question since you have no option but to treat the contribution as nondeductible.  Because you rolled over your 401(k) to an IRA in the same year and you had money in a traditional IRA at year end, only a portion of your $5,500 basis is included in the Roth conversion and the remainder of the basis remains with your traditional IRAs to be distributed ratably with future traditional IRA distributions until you have no money left in traditional IRAs at year end.
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