I made nondeductible contribution 10 years ago and converted all to ROTH IRA in 2020. In 1099-R I received shows entire amount as Gross Distribution & Taxable amount and both box was checked. I don't have to pay tax twice on my nondeductible contribution. Can I override box 2a? I tried that, but it didn't make any difference on tax. How to report this?
No, please enter the 1099-R as shown on the form.
If you reported the nondeductible contribution on Form 8606 back then, then you can enter the basis when you enter your 1099-R. Then the part allocated to the basis will be tax-free.
- Login to your TurboTax Account
- 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 “What Did You Do With The Money” and choose “I moved it to another retirement account”
- 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"
- On the "Your 1099-R Entries" screen click "continue"
- Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
- Answer the questions about the basis and the value.
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