Roth Conversion selection not being saved

[user10275]

I did a back door conversion to Roth IRA last year. After I entered the 1099-R tradition IRA distribution, I followed the next steps to indicate it was all converted to Roth.
 1. Select “I converted some or all of it to a Roth IRA” on the Tell us if you moved the money through a rollover or conversion screen

2. Next, I choose “Yes, all of this money was converted to a Roth IRA”

But I see that Turbo Tax is including it as taxable IRA distribution on 1040 4b. When I go back to the 1099-R entries, I’m seeing that the option for Roth IRA conversion is not selected. I tried to save it multiple times but ending up with same issue.

Anyone faced this issue and is there a workaround for it?

[DanaB27 · Accepted solution]

Maybe try to clear the cache and delete the cookies before trying to reenter it.

Can you check Form 8606 to see if part II is filled out? Select Tax Tools on the left and then Print Center and choose the print center(you will have to pay for your return to see all the forms).

Please use the following instructions to enter a "Backdoor IRA" to ensure it is calculated correctly in TurboTax.

To enter the nondeductible contribution to the traditional IRA:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions”
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
9. If you had a basis in the Traditional IRA before then enter the amount.
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the 1099-R distribution/conversion: 

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Your 1099-R Entries" screen click "continue"
6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2020 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs.

[user10275]

Thank you @DanaB27 . I followed the steps exactly as you suggested and it worked.