how to report backdoor roth - step by step

[chuckers]

I'm trying to figure out how to report my backdoor roth conversion through the step by step menu. I entered the 1099-R under the wage and income section. I answered the question about taking the distribution and converting it fully to a roth ira. 

Now i'm in the deductions and credits section. Under the IRA section it already shows my contribution from the wage and income section. Do I need to go in there and add my roth ira? I'm assuming now because I technically contributed to a traditional ira? If i check the roth ira then it tells me i over contributed. When i go through the forms i get even more confused because some of the sections where it mentions conversion to a roth are blank. 

please help.

[KarenM90]

Here are the step by step instructions to enter your Back Door Roth contribution. 

I recommend that you delete whatever you have entered and follow these step by step.

How to Enter a Backdoor Roth

[chuckers]

Thank you! According to your link everything checks out when I verify the 1040:

To check the results of your backdoor Roth IRA conversion, see your Form 1040:

1. Select Forms in the upper-right corner of the screen.
2. Select Form 1040 from the left menu.
3. Use the scroll bar to find:
   • Line 4a IRAs Distributions. Your backdoor Roth IRA amount should be listed.
   • Line 4b Taxable amount should be zero unless you had earnings between the time you contributed to your Traditional IRA and the time you converted it to Roth IRA.
4. Select Schedule 1 from the menu in the left side of the screen. Line 19 IRA deduction should be blank.
5. To return to where you left off in TurboTax, select Step-by-Step in the upper-right corner of the screen.

[erndisney]

Those results don't seem to work on the Home and business copy of Turbo Tax. Is here another way of doing it in this copy of the software. Nothing matches when I get into the 1099-R looks completely different.

 Ern

[JohnB5677]

A backdoor Roth IRA allows you to get around income limits by converting a Traditional IRA into a Roth IRA. Contributing directly to a Roth IRA is restricted if your income is beyond certain limits, but there are no income limits for conversions.

Doing a backdoor Roth conversion is a two-step process.

TurboTax Online

TurboTax CD/Download

[mmiracle44]

I am having the same issue in Premier. After I select, converted all the money into a Roth IRA account it doesn't ask any further questions. Taxable amount is equal to IRA distribution on 1040.

[Critter]

Delete the 1099-R and start the process over again ... you MUST do the contribution FIRST and then the 1099-R ... https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-convers...

[erndisney]

Finally it worked.. By the way I did do the contributaion first, and it wouldnt work  I then had to delete the 1099-r and redo the contribution and then the 1099_R before it would work..

 Thanks for the help..

 Ern

[palo_alto]

It took me forever, but as everyone stated, this year's Turbotax requires the IRA contribution and conversion to Roth first, followed by entering the 1099-R.  Horrible SW to not handle this properly regardless of the order of entry.

If you entered in the step-by-step order (i.e. the wrong way for TY2019), deleting the 1099-R and IRA contributions in step-by-step may not be sufficient.  It wasn't for me.

I needed to go to forms and then delete all IRA worksheets, 1099-R, etc.

Then following the prescribed order worked as described in: https://ttlc.intuit.com/community/entering-importing/help/how-do-i-enter-a-backdoor-roth-ira-convers...

[Kalsch]

I made non-deductible IRA contributions on 4/14/19 for 2018 which I reported on my my 2018 return. The conversion to Roth were processed by my investment company the following week, so I received 1099-INVs for the distributions from the traditional to fund the Roth conversions.  The 2019 turbo tax software is showing an error and not letting me complete the taxes when I indicate the full amount of the distribution was converted because it doesn't see the corresponding non-deductible contribution. How do input the information to allow for proper filing of this backdoor Roth contribution?

[dmertz]

"I received 1099-INVs for the distributions from the traditional to fund the Roth conversions."

This would have been reported on a Form 1099-R. There is no such thing as a 1099-INV.

If you used TurboTax to prepare your 2018 tax return which, properly prepared, would have included Form 8606 showing your nondeductible traditional IRA contribution having been included in the total on line 14.  Transferring that tax return file into 2019 TurboTax would have transferred in this basis to show on line 2 of your 2019 Form 8606.  However, if, when TurboTax asked, you inadvertently indicated that you did not make nondeductible contributions for any years proper to 2019, 2019 TurboTax would have silently deleted this information that had been carried over from your 2018 tax return.

If the basis information is still present in your 2019 tax file, you'll see it on TurboTax's IRA Information Worksheet and will also be present on Form 8606 line 2 to be used in calculating the taxable amount of your Roth conversion.  Be sure to click the Continue button on the Your 1099-R Entries page to reach the questions asking you to confirm your basis and for your year-end balance in traditional IRAs.  If your year-end balance in traditional IRAs was nonzero, some, perhaps a large portion, of your Roth conversion will be taxable with the inapplicable portion of your basis remaining with your traditional IRAs to be applied to future distributions, all calculated on Form 8606.

[Shahvatsal92]

I contributed to 2019 traditional IRA in Feb 2020 and converted it to Roth after 2 weeks. 

Additionally, I also contributed for 2020  traditional IRA in March 2020 and converted it to Roth after 2 weeks.

As these happened after Dec 31st 2020, I haven't received any forms for 2020 year. 

How should I enter this scenario in Turbotax ? 

Please help ! Thanks in advance ! 

[dmertz]

Shahvatsal92, your post is self-contradictory.  You said both that the Roth conversions occurred in early 2020 and that these Roth conversion occurred after December 31, 2021.  Both can't be true.

[chuckers]

I assume you meant before not after dec 2020. I would just contact your investment firm for the paperwork.

[Shahvatsal92]

Sorry I meant it this way : 

I made 2020 year contribution in 2021 ( as you can contribute for 2020 till 2021)

And then I contributed for 2021 year in March 2021 as well.