Should full roth conversion box be checked on 1099-R if I did a backdoor Roth?

[bev-rockwell]

Turbotax is flagging: full roth conversion box should not be checked unless there is an amount on line B4 (1099-R). I did a Backdoor Roth and I am not sure if this box should not be checked. Currently it is checked.  Do I unselect it or keep it selected? Thank you.  Samantha

[macuser_22]

I suggest that you do not even attempt to do a backdoor Roth in the forms mode if that is what you are trying to do.  There are too many forms and worksheets that interact and unless you are a tax expert, you will probably do it wrong (and if you are a tax expert, you would not need to ask).

This so-called “back-door Roth” method ONLY works if you have NO OTHER Traditional IRA accounts.  If you do, then the non-deductible part must be spread over ALL accounts and cannot be withdrawn by itself.  Only if you started with NO Traditional, SEP & SIMPLE IRA and ended up with a zero amount in ALL Traditional, SEP & SIMPLE IRA accounts will this Roth conversion not be taxable.

First you must enter your Traditional IRA contributions (if there were 2018 contributions).

IRA contribution
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),,
Retirement & Investments,
Traditional & Roth IRA contribution.

Be SURE to answer the follow up that the are choosing to make this contribution NON-DEDUCTIBLE - if that screen comes up. (DO NOT say that you moved (recharacterized) the money to a Roth) – this is a conversion, not a recharactorazition.

Then enter the 1099-R that shows the distribution.

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),,
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

Answer the follow-up questions answer the question that you moved the money to another retirement. The screen will open up with choices of where it was moved. Choose you converted it to Roth IRA.

When asked if you have made any non-deductible contributions say " "yes" if you did then enter the non-deductible contributions made for tax years before 2018.     (Usually zero unless you also made a 2017 or earlier non-deductible contribution. If you do have prior year basis then enter the last filed 8606 line 14 value.).

Enter the 2018 year end value of your Traditional IRA a "0" (zero) - if it is in fact zero - this tax free Roth conversion will not work if it is not zero.

[If you had any other Traditional IRA at the end of 2018, then the nondeductible "basis" must be pro-rated over the current distribution and the total IRA value and only a portion of the Roth conversion will be non taxable and part will be taxable, with the remaining non-deductible basis carrying forward for future distributions. You can never only withdrew the nondeductible basis as long as the IRA exists and has a value more than zero.]

The non-deductible amount of your contribution will be subtracted from the taxable amount of the conversion on then 8606 form and enter on line 4a of them 1040 form and a zero taxable amount on line 4b if you did it right.

Also see this TurboTax FAQ:
https://ttlc.intuit.com/questions/4350747-how-do-i-enter-a-backdoor-roth-ira-conversion

[jrdinsmore]

He is not in form mode. He is getting an error when he goes to file. The error goes to the worksheet in the forms and is "full roth conversion box should not be checked unless there is an amount on line b4" You just cant fix this!!! help!!!

[macuser_22]

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@jrdinsmore wrote:

He is not in form mode. He is getting an error when he goes to file. The error goes to the worksheet in the forms and is "full roth conversion box should not be checked unless there is an amount on line b4" You just cant fix this!!! help!!!

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What code is in box 7 on your 1099-R?   Is the IRA/SEP/SIMPLE box checked?

Is box 2b (not determined) checked?

Is the IRA owner over 70 1/2 years old?

[HLM2]

As for me, yes to the first two questions, no to the third, unless you refer to the original (now deceased) owner.

Here's the problem: TurboTax basically tells you that you need to fill in a number on line b4, but it won't allow you to fill it in. I can highlight the blank on the form but it won't accept my input. The above discussion obviously pertained to TurboTax 2019. Now we are into TY 2020 and the same bug keeps me from getting my taxes done.

This pisses me off to no end. I have wasted hours screwing around with this stupid thing. Oh, and one more thing: TT keeps telling me elsewhere that I need to enter a valid phone number, when my phone number is plenty valid! What the hell, TurboTax?!?!?! How do you determine my phone number is not valid? It's the same one I've used for years.

TurboTax sucks!

[macuser_22]

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@HLM2 wrote:

As for me, yes to the first two questions, no to the third, unless you refer to the original (now deceased) owner.

Here's the problem: TurboTax basically tells you that you need to fill in a number on line b4, but it won't allow you to fill it in. I can highlight the blank on the form but it won't accept my input. The above discussion obviously pertained to TurboTax 2019. Now we are into TY 2020 and the same bug keeps me from getting my taxes done.

This pisses me off to no end. I have wasted hours screwing around with this stupid thing. Oh, and one more thing: TT keeps telling me elsewhere that I need to enter a valid phone number, when my phone number is plenty valid! What the hell, TurboTax?!?!?! How do you determine my phone number is not valid? It's the same one I've used for years.

TurboTax sucks!

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b4 is in the forms mode that is not supported for data entry.

This thread was about a 2018 tax return.    A code 7 and IRA box checked indicated that this is your IRA and NOT inherited.      If you are asked if it was inherited answer NO or you will not get the rollover question.

(TurboTax should not even ask that question for a code 7 1099-R - that appears to be a bug).

If this IS an inherited IRA that was inherited from a spouse and you choose to treat it as your own, then it is no longer inherited it is yours.

If inherited from a non-spouse then the 1099-R is incorrect - contact the issuer.