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lisasun
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my back door ira contribution is showing a portion being taxable and should zero, have followed steps listed and not sure how to fix it (i am using online turbo tax)

 
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2 Replies

my back door ira contribution is showing a portion being taxable and should zero, have followed steps listed and not sure how to fix it (i am using online turbo tax)

if it's partially taxable that usually indicates you had pre-tax dollars in your IRA(s) not covered by the basis so the Roth conversion is considered taken from both pre-tax and after-tax dollars in a pro rata manner.  Was your answer to the market value on 12/31/25 bigger than the total of your basis on Form 8606?

my back door ira contribution is showing a portion being taxable and should zero, have followed steps listed and not sure how to fix it (i am using online turbo tax)

correction - "Was your answer to the market value on 12/31/25 bigger than the total of your basis on Form 8606?" is not quite the right question - but hopefully you get the gist - did you have pre-tax dollars in your IRA?

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