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TLoncorich
Returning Member

Non-deductable Roth conversion: 1099R is showing 2 years worth resulting on 1/2 taxable

in 2025, I did 2 non-deductable roth IRA conversions.  one for calendar 2024 (pre-april 15 2025) and one later in the calendar year for 2025.

 

My 1099R for 2025 is showing 16,000 (gross and taxable, amount not determined, Dist code 2, IRA/SEB/SIMPLE checked).  For 2025 taxes, it is showing 8000 deductible, 8000 taxable.  

 

Is there a way in turbotax to exclude the 8000 for 2024?

Do I need a revised 1099r that only reflects the 2025 non-deductable roth conversion?

 

Thanks!

 

 

 

 

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2 Best answer

Accepted Solutions
AnnetteB6
Employee Tax Expert
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Non-deductable Roth conversion: 1099R is showing 2 years worth resulting on 1/2 taxable

No, you cannot exclude the $8000 for the 2024 backdoor Roth conversion and you do not need a revised Form 1099-R because it is correct.

 

When you make a non-deductible Traditional IRA contribution and then convert the Traditional IRA to a Roth IRA, that is called a backdoor Roth conversion.  It is a two-step process with regard to reporting it on your tax return and it can get confusing when done over two calendar years.

 

Since your first conversion was done for the 2024 tax year, your 2024 tax return should have included the $8000 non-deductible contribution to your Traditional IRA.  This would have been reported on Form 8606 as the basis of the Traditional IRA.  Then, your 2025 return will also include another $8000 non-deductible contribution to your Traditional IRA, which will again be reported on Form 8606.  This makes the total basis $16,000.

 

Your Form 1099-R is showing that a total of $16,000 was distributed out of the Traditional IRA during the calendar year of 2025.  When you enter this into your return you will indicate that all of the money was converted to a Roth IRA and the basis shown on Form 8606 will make the transaction non-taxable (as long as you do not also have another Traditional IRA or pre-tax contributions in the Traditional IRA).

 

If you did not include the $8000 non-deductible contribution on your return for 2024 so that it was filed on Form 8606, then you should file Form 8606 now.  

 

Take a look at the following TurboTax help article for more information and guidance to enter these transactions as part of your return and to file the Form 8606 for 2024 if needed:

 

How do I enter a backdoor Roth IRA conversion?
 

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dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Non-deductable Roth conversion: 1099R is showing 2 years worth resulting on 1/2 taxable

Roth conversions are done in a particular year, not for a particular year.  The Roth conversions done in 2025 are reportable on your 2025 tax return (2025 Form 8606), not on your 2024 tax return.  The basis from your 2024 traditional IRA contribution, shown on line 14 of your 2024 Form 8606, carries forward to line 2 of your 2025 Form 8606 to be included in the basis that is applied to the Roth conversions performed in 2025.

View solution in original post

2 Replies
AnnetteB6
Employee Tax Expert
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Non-deductable Roth conversion: 1099R is showing 2 years worth resulting on 1/2 taxable

No, you cannot exclude the $8000 for the 2024 backdoor Roth conversion and you do not need a revised Form 1099-R because it is correct.

 

When you make a non-deductible Traditional IRA contribution and then convert the Traditional IRA to a Roth IRA, that is called a backdoor Roth conversion.  It is a two-step process with regard to reporting it on your tax return and it can get confusing when done over two calendar years.

 

Since your first conversion was done for the 2024 tax year, your 2024 tax return should have included the $8000 non-deductible contribution to your Traditional IRA.  This would have been reported on Form 8606 as the basis of the Traditional IRA.  Then, your 2025 return will also include another $8000 non-deductible contribution to your Traditional IRA, which will again be reported on Form 8606.  This makes the total basis $16,000.

 

Your Form 1099-R is showing that a total of $16,000 was distributed out of the Traditional IRA during the calendar year of 2025.  When you enter this into your return you will indicate that all of the money was converted to a Roth IRA and the basis shown on Form 8606 will make the transaction non-taxable (as long as you do not also have another Traditional IRA or pre-tax contributions in the Traditional IRA).

 

If you did not include the $8000 non-deductible contribution on your return for 2024 so that it was filed on Form 8606, then you should file Form 8606 now.  

 

Take a look at the following TurboTax help article for more information and guidance to enter these transactions as part of your return and to file the Form 8606 for 2024 if needed:

 

How do I enter a backdoor Roth IRA conversion?
 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
dmertz
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Non-deductable Roth conversion: 1099R is showing 2 years worth resulting on 1/2 taxable

Roth conversions are done in a particular year, not for a particular year.  The Roth conversions done in 2025 are reportable on your 2025 tax return (2025 Form 8606), not on your 2024 tax return.  The basis from your 2024 traditional IRA contribution, shown on line 14 of your 2024 Form 8606, carries forward to line 2 of your 2025 Form 8606 to be included in the basis that is applied to the Roth conversions performed in 2025.

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