roth-IRA backdoor conversion question

[sigu828]

Basically, I contributed $11500 into my IRA ~ March 2019, $5500 for year 2018 since I didn't contribute in 2018, and $6000 for year 2019. 

however, I couldn't find a place in Turbotax to list the $5500 as for year 2018 instead of 2019. as a result, Turbotax consider the $5500 as excess contribution for 2019 and insist that I pay tax for this money (even though this is after-tax money) and penalty and asking me to withdraw the money to avoid future penalties. 

I'm very frustrated. how do I make turbotax understand my situation and consider the $5500 as contribution for year 2018 instead of 2019? please help. Thanks. 

[DianeC958 · Accepted solution]

You cannot report a contribution made to an IRA for 2018 on your 2019 tax return.

If you did not report this contribution on your 2018 return you need to amend your 2018 return to include the information.  If you qualify to receive a deduction for the contribution it will reduce the amount of tax your owe for 2018 and you will receive a refund.

If the contribution is not deductible the program will generate form 8606 to show that it is a non-deductible contribution and then when you convert it to a Roth IRA you will not be taxed on the conversion amount.

Link to How to Amend Prior Years Returns Using TurboTax

[sigu828]

Thanks a lot.  DianeC958

To summarize:

1. I will amend my 2018 return by filing the 8606 with $5500 non-deductible IRA contribution make in March 2019. this shouldn't change the tax amount for 2018.

So it's OK for me to do this in 2020 and it's not too late, right?

2. I will report in my 2019 return a "total basis as of December 31, 2018" to be $5500, which will offset the total distribution of $11500 in my 1099-R form for 2019. do I need to be concerned that the "total basis as of December 31, 2018" since the $5500 was not deposited into the IRA until march 2019? 

[prime2311]

I have a similar issue. I contributed to a non-deductible traditional IRA for year 2018 in Dec 2018, and did a conversion to Roth for this contribution in Jan 2019. How do I provide this information (that this is a conversion for a non-deductible IRA contribution made in 2018, that the tax was already paid in 2018, so no need to pay the tax on it in 2019, even though it is a distribution in 2019).

[Critter]

After you enter the 1099 - r simply follow the interview screens and indicate it was a conversion to a Roth and that there was basis from the prior-year that was reported on a form 8606.