Received a 1099-R with the post-tax amount rolled to a Backdoor Roth-IRA and the gains rolled to a Rollover IRA. 1099-R worksheet shows the entire amount rolled to Roth.

[tsimard]

Need help entering information into software.

[SabrinaD2]

To enter the information for your 1099-R with the post-tax amount rolled to a Backdoor Roth IRA and the gains rolled to a Rollover IRA in TurboTax, follow these steps:

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

TurboTax Online

Step 1:  Enter the Non-Deductible Contribution to a Traditional IRA

1. Go to the Traditional IRA and Roth IRA screen, check the Traditional IRA box and select Continue.
2. On the Is This a Repayment of a Retirement Distribution? screen, select No.
3. On the Tell Us How Much You Contributed screen, enter the amount contributed and select Continue.
4. On the Did You Change Your Mind? screen, select No, then answer the questions on the following screens.
5. When you reach the Choose Not to Deduct IRA Contributions screen:
   1. Select Yes, make part of my IRA contribution nondeductible.
   2. Enter the amount you contributed.
   3. Select Continue.
      • Note: If none of your contribution can be deducted, you won't see the option to make part of it nondeductible. Instead, you'll see the message Income Too High To Deduct an IRA Contribution, and the full amount of your contribution will automatically be nondeductible.
6. On the Your IRA Deduction Summary screen, review the info and select Continue.

Step 2:  Enter the Conversion from a Traditional IRA to a Roth IRA

1. Go to Wages & Income.
2. On the Your income and expenses screen, locate and select the Retirement Plans and Social Security section, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
3. Answer Yes to Did you get a 1099-R in 2024?, then Continue.
   • If you land on the screen Review your 1099-R info select Add another 1099-R.
4. Select how you want to enter your 1099-R and follow the instructions.
5. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
6. Select I converted some or all of it to a Roth IRA and Continue.
7. Next, select Yes, all of this money was converted to a Roth IRA.
8. Continue answering questions until you reach the screen Review your 1099-R info.

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

1. From the menu, select Tax Tools, then Tools (if you're currently using the TurboTax Mobile app, you'll need to sign in to the web browser version).
2. Under Tools Center, select View Tax Summary.
3. From the side menu, select Preview my 1040.
   • Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a as IRA distributions.
   • Taxable amount on Form 1040, Line 4b 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, in which case the earnings would be taxable.
   • If you have a Schedule 1, then Schedule 1, Line 20, IRA deduction should be blank.
4. Select Back to return to where you left off in TurboTax.

[SabrinaD2]

If your 1099-R incorrectly shows the entire amount rolled to a Roth IRA but in reality:

• Post-tay (basis) funds went to a backdoor Roth IRA
• Pre-tax gains went to a Rollover IRA

Then you need to correctly report it in TurboTax to avoid unnecessary taxes.

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

TurboTax Online

Step 1:  Enter the Non-Deductible Contribution to a Traditional IRA

1. Go to the Traditional IRA and Roth IRA screen, check the Traditional IRA box and select Continue.
2. On the Is This a Repayment of a Retirement Distribution? screen, select No.
3. On the Tell Us How Much You Contributed screen, enter the amount contributed and select Continue.
4. On the Did You Change Your Mind? screen, select No, then answer the questions on the following screens.
5. When you reach the Choose Not to Deduct IRA Contributions screen:
   1. Select Yes, make part of my IRA contribution nondeductible.
   2. Enter the amount you contributed.
   3. Select Continue.
      • Note: If none of your contribution can be deducted, you won't see the option to make part of it nondeductible. Instead, you'll see the message Income Too High To Deduct an IRA Contribution, and the full amount of your contribution will automatically be nondeductible.
6. On the Your IRA Deduction Summary screen, review the info and select Continue.

Step 2:  Enter the Conversion from a Traditional IRA to a Roth IRA

1. Go to Wages & Income.
2. On the Your income and expenses screen, locate and select the Retirement Plans and Social Security section, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
3. Answer Yes to Did you get a 1099-R in 2024?, then Continue.
   • If you land on the screen Review your 1099-R info select Add another 1099-R.
4. Select how you want to enter your 1099-R and follow the instructions.
5. When entering the 1099-R, verify the Box 7 code. For a backdoor Roth conversion, it should typically be Code 2 (early distribution, exception applies) or Code 7 (normal distribution if over 59½)
6. If necessary, manually split the contributions
   1. Allocate post-tax basis to the Roth IRA (tax-free)
   2. Allocate pre-tax gains to the Traditional Rollover IRA (tax-deferred)
7. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
8. Select I converted some or all of it to a Roth IRA and Continue.
9. Next, select Yes, all of this money was converted to a Roth IRA.
10. Continue answering questions until you reach the screen Review your 1099-R info.

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

1. From the menu, select Tax Tools, then Tools (if you're currently using the TurboTax Mobile app, you'll need to sign in to the web browser version).
2. Under Tools Center, select View Tax Summary.
3. From the side menu, select Preview my 1040.
   • Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a as IRA distributions.
   • Taxable amount on Form 1040, Line 4b 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, in which case the earnings would be taxable.
   • If you have a Schedule 1, then Schedule 1, Line 20, IRA deduction should be blank.
4. Select Back to return to where you left off in TurboTax.

[Edited 03/09/2025|6:47 pm PST] @tsimard

[dmertz]

Presumably this is a code-G Form 1099-R for a distribution from an employer plan.  To accommodate TurboTax's limitations with respect to a Form 1099-R reporting distributions split between a rollover to a traditional IRA and a rollover to a Roth IRA, you must split the Form 1099-R into two, one for the portion rolled over to the Roth IRA showing the after-tax portion distributed from the employer plan and the second one for the-pre-tax portion rolled over to the traditional IRA.