Traditional IRA contribution in February 2019, converting the Traditional to Roth IRA in February 2019.

[plong_ind]

My wife contributed $5500 to a traditional IRA in February 2019 (for tax year 2018). She converted the $5500 in the traditional IRA to a Roth IRA a few days later (AKA Backdoor Roth IRA). Do we need to report the contribution to the traditional IRA on the 2018 tax return, then report the conversion on the 2019 Tax Return? 

[dmertz · Accepted solution]

Yes, the traditional IRA contribution for 2018 is reportable on the 2018 tax return.  The Roth conversion is reportable on the 2019 tax return by entering the 2019 Form 1099-R next year.  If the contribution for 2018 is nondeductible, TurboTax will prepare 2018 Form 8606.  Line 14 of the 2018 Form 8606 will carry forward to line 2 of the 2019 Form 8606.

[taxman4]

Traditional ira converted to roth  ira, all in 2019. 

How where to report this? 

[dmertz · Accepted solution]

Assuming that the traditional IRA contribution was for 2019, enter the traditional IRA contribution under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.  (Do not indicate that you changed you mind and recharacterized the contribution to be a Roth IRA contribution instead.)  If the traditional IRA contribution was instead for 2018, the traditional IRA contribution was required to be reported on your 2018 tax return.

Near the end of this month (January) you'll receive a Form 1099-R reporting the distribution from the traditional IRA.  Enter the Form 1099-R under Wages & Income -> Retirement Plans and Social Security -> IRA, 401(k), Pension Plan Withdrawals (1099-R) and in the questions that follow indicate that you moved the money to another retirement account, that you converted the money to Roth, and indicate the amount converted.