topic Backdoor Roth IRA in Get your taxes done using TurboTax

Backdoor Roth IRA

A_Ball205 — Tue, 04 Feb 2025 19:17:38 GMT

I am working on my taxes for 2024. I made a Traditional IRA contribution in 2025 for tax year 2024. I then did a R/O to my Roth IRA (backdoor). When adding this into TurboTax, this question comes up:

Did you change your mind? Tell us if you switched, or "recharacterized" any of the $ Traditional IRA contribution for 2024 over to a Roth IRA contribution. Note: "Switched" or "recharacterized" does not mean converted or rolled over.

What is the best way to answer this for a backdoor Roth IRA? Thanks.

Re: Backdoor Roth IRA

AnnetteB6 — Tue, 04 Feb 2025 19:42:57 GMT

For the situation you described, the best answer to the question about 'did you change your mind' is no. You did not recharacterize the contribution.

Since you contributed to your Traditional IRA during the calendar year of 2025 for the tax year of 2024, you will only report the non-deductible contribution to the Traditional IRA on your 2024 tax return.

When you converted (not rolled over) the Traditional IRA to your Roth IRA, that conversion took place in 2025. That means that you will receive a 2025 Form 1099-R reporting that distribution from the Traditional IRA. The 2025 Form 1099-R will be entered and reported on your 2025 tax return. That is where the Roth IRA conversion will take place.

Re: Backdoor Roth IRA

A_Ball205 — Tue, 04 Feb 2025 19:56:30 GMT

Thank you, this is helpful. I did the same thing last year. I made a backdoor Roth contribution for 2023 in calendar year 2024. I did receive my 1099-R and added in TurboTax. This question did not come up when adding in my 1099-R. Should it have come up?

For my taxes in 2024, I should have 2 tax Form 8606, correct?

Re: Backdoor Roth IRA

AnnetteB6 — Tue, 04 Feb 2025 20:19:02 GMT

No, that question should not have come up after entering the Form 1099-R. Instead, you should have seen a question about what you did with the distribution. The answer to that question would have been that you converted it to a Roth IRA.

You will only have one Form 8606, unless you also have a spouse who has their own Form 8606. There will be two sections of the form filled out -- one for the non-deductible contribution and one for the Traditional to Roth conversion.

@A_Ball205

Re: Backdoor Roth IRA

A_Ball205 — Tue, 04 Feb 2025 20:35:36 GMT

Thank you, I appreciate it. That is helpful to know there is only 1 Form 8606, unless there is a spouse too. The only related question came up was:

Tell us the total value of your traditional IRA. Enter the total value of the traditional IRA, SEP, and SIMPLE IRA accounts on 12.31.2024. This information is sent by mail on Form 5498. Do not include Roth IRAs.

Enter any outstanding 2024 rollovers and recharacterizations that were not completed until 2025.

Values of the IRA as of 12.31.2024 $______

Outstanding Rollovers $_____

Outstanding Recharacterizations $_____

I don't have any money in my Traditional IRA, did not receive Form 5498, and the Traditional IRA to Roth happened in 2024. So I put $0 in each line item. Should there be a different question that comes up?

Re: Backdoor Roth IRA

A_Ball205 — Tue, 04 Feb 2025 20:39:42 GMT

Never mind, I did see this question come up when I initially added the 1099-R. It doesn't come up again as I am checking my answers, unless I 'edit' the 1099-R to view it again. Thank you so much!