☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 13, 2022 11:06:30 PM

Need help entering multiple 1099-R for roth & traditional ira

I'm not sure how i should be entering the multiple 1099-R's I received for my roth & traditional IRA.

 

I initially contributed 6K to my Roth. I realized this was a mistake and it should have gone to my Trad IRA since I am trying to do a backdoor roth. In a panic, I just did a withdrawal. After realizing this might be wrong I contacted my financial institution and they recommend I put it back and and then submit as a recharacterization. to traditional After which I could do the normal conversion back to a Roth.

 

So now I have these 1099-R's:

- Roth 1099R #1 for $6000 distribution

- Roth 1099R #2 for $6112 recharacterization ( i didn't realize it pulled some extra cash in the account)

- Trad 1099R for $6112 distribution -> This one i treated as a backdoor roth like I have done in the past.

 

How should I be entering the extra Roth 1099R's? Any advice would be appreciated.

Thanks!

0 3 1422
1 Best answer
Employee Tax Expert
Mar 14, 2022 4:36:56 AM

First, you will enter the recharacterization when you enter the Roth contribution and make this contribution nondeductible:

 

You will enter the recharacterization when you enter the contribution to the Roth 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 “Roth IRA”
  5. Answer “No” to “Is This a Repayment of a Retirement Distribution
  6. Enter the Roth contribution amount 
  7. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
  8. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
  9. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)

 

 

To enter your 1099-Rs/conversions:

 

  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
  4. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  5. 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"
  6. On the "Your 1099-R Entries" screen click "Add another 1099-R" and enter your 2nd 1099-R
  7. Repeat for the last 1099-R
  8. When you get again to the "Your 1099-R Entries" screen click "continue"
  9. Answer "yes" to "Any nondeductible Contribution to your IRA?"
  10. Answer the questions about the basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs.

 

3 Replies
Employee Tax Expert
Mar 14, 2022 4:36:56 AM

First, you will enter the recharacterization when you enter the Roth contribution and make this contribution nondeductible:

 

You will enter the recharacterization when you enter the contribution to the Roth 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 “Roth IRA”
  5. Answer “No” to “Is This a Repayment of a Retirement Distribution
  6. Enter the Roth contribution amount 
  7. Answer “Yes” to the recharacterized question on the “Did You Change Your Mind?” screen and enter the contribution amount (no earnings or losses)
  8. TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
  9. On the screen "Choose Not to Deduct IRA Contributions" answer "Yes" (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible)

 

 

To enter your 1099-Rs/conversions:

 

  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
  4. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
  5. 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"
  6. On the "Your 1099-R Entries" screen click "Add another 1099-R" and enter your 2nd 1099-R
  7. Repeat for the last 1099-R
  8. When you get again to the "Your 1099-R Entries" screen click "continue"
  9. Answer "yes" to "Any nondeductible Contribution to your IRA?"
  10. Answer the questions about the basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs.

 

Level 1
Mar 14, 2022 9:46:02 AM

thanks for this. I will try it. What do I do about the 1st withdrawal 1099 that i then put back?

Employee Tax Expert
Mar 14, 2022 10:01:01 AM

You will still have to report Form 1099-R for the withdrawal. You will be able to answer follow-up questions in regards to your Roth withdrawal after you entered all your 1099-Rs. Be sure to enter your net contributions since you can withdraw Roth contributions anytime tax- and penalty-free.