Report IRA to Roth IRA conversion in TT

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In 2023 I moved funds from a Vanguard traditional IRA to a previously established Vanguard Roth IRA. No funds were withheld to pay taxes. I believe that this conversion should be reported on Form 8606, but I can't figure out how to get TT to produce this form. A Google search for this process indicated that I should say YES when TT asks about whether I made Any Nondeductible Contributions to My IRA? BUT, the text below the question asks if I made such contributions to my traditional IRA (rather than to the Roth, as I would expect). It then states that "nondeductible contributions are tracked on Form 8606 in your prior year tax returns." First, I don't have an 8606 from prior years and then, even when I say YES on this page, iTT never asks about the $$ converted and there is no form 8606 shown when I look at the forms list for my return. I have not found if or where TT asks similar questions about the Roth IRA getting the funds. Obviously, I am lost and need help. 

[AnnetteB6 · Accepted solution]

There are two steps involved in the process of reporting a backdoor Roth IRA conversion.  

First, you must report that you made a non-deductible contribution to your Traditional IRA account.  This is what gets reported on Form 8606.  

Then, after you convert the Traditional IRA funds to a Roth IRA, you will receive a Form 1099-R showing the amount that was distributed (taken out) from the Traditional IRA.  After you enter the Form 1099-R in your return, there is a follow-up question about what you did with the money.  This is where you will say that it was moved (converted) to a Roth IRA.

Converting money from Traditional IRAs to Roth IRAs is not the same thing as making a contribution to the Roth IRA.

In your case, if you contributed the money to the Traditional IRA as a non-deductible contribution in 2023, then it is reported on your 2023 tax return.  Also, if you then converted the Traditional IRA to a Roth IRA in 2023, then you should have a Form 1099-R that is also reported on your 2023 return.  If the conversion happened during the 2024 calendar year, then you will receive a Form 1099-R for 2024 that will be reported on your 2024 tax return.

Take a look at the following TurboTax help article for step-by-step instructions to enter this into your return:

How do I enter a backdoor Roth IRA conversion?