Mega backdoor ROTH + Backdoor ROTH: How to file in TurboTax

 

To enter the backdoor Roth contribution and conversion, and the other 2 1099-Rs please follow the steps below.

 

To enter the nondeductible contribution to the traditional IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions”
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
9. If you had a basis in the Traditional IRA before then enter the amount.
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a screen saying $0 is deductible).

 

To enter all 3 Form 1099-Rs: 

  

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R for the conversion from traditional to Roth IRA
4. 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”
5. On the "Your 1099-R Entries" screen click "Add 1099-R"
6. Answer all follow-up questions carefully
7. Repeat for the 3rd 1099-R
8. On the "Your 1099-R Entries" screen click "continue"
9. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
10. Answer the questions about the basis and value

 

 

 

 

Thank you- here is the situation after I tried 

 

I have 3 separate 1099-Rs related to the following transactions. 

1. Rollover of pre-tax dollars (allowed non-hardship distribution) from my 401k to Traditional IRA. Showing G as the distribution code. I assume this just shows Rollover to Traditional IRA. This is from the 401k administrator.
2. Rollover of post-tax dollars that I had contributed to my 'After-tax 401K' to Roth IRA directly. Showing 1 as the distribution code. I assume this is still considered 'rollover' and should not have any tax implication as these were post-tax dollars from after-tax 401k. This is from 401k administrator.
3. Roth conversion from Traditional IRA that has the pre-tax dollars from my 401k as described in #1 above. Additionally, this also has the non-deductible $6000 contribution I made to Traditional IRA which was converted to Roth (backdoor Roth conversion).

 

2 Questions:

Given the above information, does what you have described still makes sense as the order of entries in TurboTax?

 

Is it fair to say that the amount converted from #1 in to Roth will have trigger tax liability?

Yes, you will enter the nondeductible contribution and then enter all 3 Form 1099-Rs. Answer all follow-up questions carefully.

 

Yes, since you have pre-tax funds in your traditional IRA part of the conversion will be taxable according to the pro-rata rule.