turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

cwe09
New Member

Should I have been charged a 6% tax on a backdoor Roth conversion? We do it every year, and 2021 was the first time this has happened?

I am wondering if this is an error in the 2021 software.  There was no form 8606 (non-deductible IRA contributions) triggered in 2021, but instead there was a form 5329 (additional taxes).  
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
dmertz
Level 15

Should I have been charged a 6% tax on a backdoor Roth conversion? We do it every year, and 2021 was the first time this has happened?

There is no problem with the software.  You either mistakenly reported a Roth IRA contribution instead of a traditional IRA contribution or the traditional IRA contribution that you reported was itself an excess contribution due to having insufficient compensation to support the contribution.

 

Which part of Form 5329 shows the excess contribution and calculation of the penalty?  The answer will indicate which of these mistakes you made.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies