Late Backdoor Roth IRA

[rhziegler]

First time contributing to a backdoor Roth IRA. I contributed and converted in January 2024 for 2023 ("Late"). When prompted in Turbo tax,

"Any Nondeductible Contributions to Your IRA?

Do I select Yes or No? The prompt says for years prior

[AnnetteB6]

That question is referring to any nondeductible contributions that were made in 2022 or prior.  Your 'yes' or 'no' answer depends on whether you have made any nondeductible contributions in the past, but not including the one that was made for the 2023 tax year.  

You will be reporting the 2023 nondeductible Traditional IRA contribution as part of your 2023 tax return and you would not include that information at the prompt you are asking about.  

Since you made the Traditional IRA contribution in 2024 for your 2023 tax year, you can only report the first half of the back door Roth IRA conversion on your 2023 tax return.  The second half will be on your 2024 tax return.

When you convert a Traditional IRA to a Roth IRA, the conversion is reported on your return based on the calendar date of the conversion.  It is not associated with a particular tax year (like 2023).  Since the conversion took place in 2024, it will be reported on your 2024 tax return after you have received the 2024 Form 1099-R showing the Traditional IRA distribution.  

[rhziegler]

Great thank you!

Turbo tax then states that my income was too high. 

Am I ok to proceed with filing? This will essentially be fixed next year when I do part II correct?

[AnnetteB6]

If it is telling you that your income is too high to make a deductible contribution to your Traditional IRA, then you should be in good shape.  The contribution will be non-deductible.  For good measure, check to be sure the amount shows on Form 8606 line 1.  

There should be nothing entered in your return with regard to a Roth IRA contribution.  That will be handled next tax season with the Form 1099-R issued for the conversion.  

@rhziegler 

[rhziegler]

Is there an 8606 generated from entering into TurboTax? How do I find that?

 Thanks so much for your help, greatly appreciated 

[AnnetteB6]

You can find the Form 8606 when you print your completed return.  

If you are using TurboTax Online you will need to pay the TurboTax fee before you can print or preview the Form 8606.  

If you are using a CD/downloaded version of TurboTax, then you can click Forms in the upper right corner of the screen to preview any form in your return.  Just highlight Form 8606 on the left side of the screen to take a look.

For more information, see the following TurboTax help article:

How do I print a copy of my tax return in TurboTax?

@rhziegler