How to enter Traditional to Roth conversion Rollover contribution in the turbotax online version ?

[dmertz]

If line 4 of Form 8606 is blank, it means that when entering your 2019 traditional IRA contribution you did not indicate the amount that was contributed in 2020, or you mistakenly indicated that you recharacterized the traditional IRA contribution to be a Roth IRA contribution instead.  A Roth conversion is not a recharacterization.

[Arsenyc]

I made no contributions in 202, and I did not specify it as recharacterization. I went over my forms over and over again. Nothing fixes it. 

[dmertz]

If you made no contributions in 2020, it's correct that nothing is present on Form 8606 line 4.

[bitbyaseagull]

What if you don’t have a 1099-R? I just did the conversion (a same trustee transfer) on July 13, 2020. My financial institution says it will not issue a 1099 until next year. If possible, I’d like to pay the tax as part of my 2109 taxes, though. 

[dmertz]

A Roth conversion is reportable on the tax return of the year in which the Roth conversion was performed.  For a Roth conversion performed in 2020, you'll get the Form 1099-R near the end of January 2021 and you'll report it on your 2020 tax return.  This Roth conversion does not get reported on your 2019 tax return; it is not permitted to be treated as 2019 income.

[jns001]

I made a mistake, I made a non deductible Trad IRA contrib and Roth conversion for 2020 in 2021.  I understand I need to file that contribution on 2020 tax form and conversion on 2021 tax form when 1099-R will be issued.

Can someone tell me HOW I claim the IRA contribution for 2020 using TurboTax?  I reviewed my 8606 and it states 6000 is taxable (maybe bc I can’t show the conversion til next year?).  And will TurboTax automatically carry over for next year when I can report the conversion?

Thanks in advance.

@dmertz 

@ashleyblewis 

[jns001]

@macuser_22 
@dmertz 

@ashleyblewis 

sorry if posting twice, can’t find my orig post.

I completed Roth conversion in 2021 for 2020 contribution.  I have learned from your posts that I can’t report the conversion until 2021 tax forms.

Can someone tell me how to report my IRA contribution for 2020 using TurboTax? (I contributed 6000 to non deductible IRA and converted 100% to Roth in 2021-but meant it for 2020 contribution).

And, I plan to do Roth conversion for 2021 in 2021 (I learned my lesson!).  How will I report that next year?

[macuser_22]

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@jns001 wrote:

@macuser_22 
@dmertz 

@ashleyblewis 

sorry if posting twice, can’t find my orig post.

I completed Roth conversion in 2021 for 2020 contribution.  I have learned from your posts that I can’t report the conversion until 2021 tax forms.

Can someone tell me how to report my IRA contribution for 2020 using TurboTax? (I contributed 6000 to non deductible IRA and converted 100% to Roth in 2021-but meant it for 2020 contribution).

And, I plan to do Roth conversion for 2021 in 2021 (I learned my lesson!).  How will I report that next year?

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In 2020 report the IRA contribution and if it asks if you want it to be non-deductible say yes and enter the amount of the contribution.   It will not ask if yiur MAGI it too high to deduct.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

[jogmol47]

After entering my IRA distribution and checking that I rolled the money to another account, I did not get the option to check that the money went into a Roth.  Help!!

[macuser_22]

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@jogmol47 wrote:

After entering my IRA distribution and checking that I rolled the money to another account, I did not get the option to check that the money went into a Roth.  Help!!

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The questions are slightly different if you are using the online of desktop version.    Either way you indicate that you did a combination  of things and enter the amount converted to the Roth in the bottom box.

[jns001]

 For late Roth conversion (for 2020 tax year, contributed and converted in 21), turbo asks if I contributed to traditional, Roth, or none.

Which do I choose?

[macuser_22]

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@jns001 wrote:

 For late Roth conversion (for 2020 tax year, contributed and converted in 21), turbo asks if I contributed to traditional, Roth, or none.

Which do I choose?

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Enter your 2020 Traditional IRA contribution  in the IRA contribution section.   Say that it was non-deductible and a 2020 8606 form would be part of the tax return.   Print and keep that 8606 because you will need the box 14 amount next year to report the conversion.

   You will report this next year in 2022 when  you do your 2021 tax return and have the 2021 1099-R for the conversion.   Any conversion after Dec 31, 2020 is a 2021 conversion.

[tstanek]

Hi,

I had a phone conversation with Turbo Tax tonight (02/22/21). I need to do a manual over ride to show a conversion from an IRA to a Roth IRA. They will let me know when it is fixed.

[macuser_22]

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@tstanek wrote:

Hi,

I had a phone conversation with Turbo Tax tonight (02/22/21). I need to do a manual over ride to show a conversion from an IRA to a Roth IRA. They will let me know when it is fixed.

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Override what?  For what purpose?   The Roth conversion in TurboTax works fine and does not need any override.

[tstanek]

You are correct. An Agent told me last week that an update would fix it. It updated on 02/26/21, and I was able to do a back door to my Roth IRA then. It was taxed at 6%, but before the update on 02/26/21, it showed I would be paying a 6% penalty as it was treated as a regular cash deposit into my Roth IRA hence the 6% penalty.  Now after the update Form 5329 also shows a tax of 6%. My taxable income for 2020 is zero, so the 6% tax rate on Form 5329 is the only tax I will owe for 2020. I assume the 6% is one and done and not a 6% penalty for my Roth contribution?  I called Turbo Tax today, and talked to Barbara. She put put me on hold to link me to a CPA, but when she did the transfer, I received a message their was a waiting time again. So I effectively was back to square one. I called Turbo Tax back to get in line.

One more item. I have Form 8606 filled out yearly for a non deductible IRA I did years ago. It did not fill out this year for 2020. I researched and found out an update was supposed to occur by 02/12/21  for it, but it hasn't been updated as yet. What a mess.