This is sometimes referred to as a Backdoor Roth.
A Backdoor ROTH conversion consists of two parts.
1. The nondeductible
contribution
2. The non-taxable
distribution
To record the nondeductible contribution in TurboTax Premier do the following:
Now we’ll report the Non-taxable distribution into the Roth
If all this is done correctly and you had NO deductible IRA contributions, on your form 1040, line 15b should be $0 and line 32 should be $0
I see this answer is from 2 years ago. Both last year and this year I followed the steps as shown and TT nonetheless treats the IRA dist'n as taxable. A fix is needed. I had to go to the forms in order to get the dist'n treated properly.
If you made a Roth conversion in 2019, The 1099R from your t-IRA will issue next year and it will be reported as a taxable distribution for tax year 2019. If the t-IRA contribution was made in tax year 2018 (even if made this year) you need to indicate on your 2018 return if it was deductible or after tax. If the latter, you need to put it in on 8606 so when you report the 2019 Roth conversion, the 1099R distribution from your t-IRA will be considered non-taxable. My general recommendation is to make the non-deductible t-IRA contribution and the subsequent Roth conversion both in the same year and, preferably, early in the year. It makes the tax handling more straightforward so that all the paperwork lines up.
@nitin.sood007 - If you converted in 2019, then you will receive a 2019 1099-R next January in 2020 and report it on your 2019 tax return. The only thing that would go on a 2018 tax return would be the non-deductible 2018 contribution reported on 2018 8606 form that you will use next year to report the carry over basis.
The 2019 contribution will also be reported next year on yiur 2019 tax return.