Roth Conversion plus Backdoor Roth

jimb108 — Mon, 31 Jan 2022 18:13:14 GMT

My Form 5498 shows a total of $46,000 as "Roth IRA conversion amount", which is the sum of a Roth Conversion plus my 'backdoor' Roth.

($40K from an old 401K rolled to an IRA then immediately converted to Roth) + ( backdoor Roth of $6K which came from bank account and was contributed to IRA then immediately moved to Roth, both in 2021)

Right now my 1040 line 4b shows $46,000 of additional taxable income.

Since I already paid the tax on the $6k used for the backdoor Roth, and I did NOT take a deduction, it seems I am paying tax twice on the $6,000 backdoor Roth.

Where do I indicate the $6,000 I contributed to the IRA, for the backdoor Roth, was non-deductible so I am not double taxed?

What am I missing? 🙂

Re: Roth Conversion plus Backdoor Roth

DanaB27 — Mon, 31 Jan 2022 18:36:50 GMT

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

To enter the 2021 nondeductible contribution of $6,000 to the traditional IRA:

Open your return
Click “Deductions &Credits” on the top
Click "I'll choose what to work on"
Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the $6,000 you contributed
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
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
If you had a basis in the Traditional IRA before then enter the amount.
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion:

Click "Federal Taxes" on the top and select "Wages & Income"
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"
Answer "Yes" to the question "Did You Have Any of These Types of Income?"
Click "I'll Type it Myself"
Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
On the "Your 1099-R Entries" screen click "continue"
Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had nondeductible contributions in prior years.
Answer the questions about the basis and value

topic Roth Conversion plus Backdoor Roth in Deductions & credits

Roth Conversion plus Backdoor Roth

Re: Roth Conversion plus Backdoor Roth