topic How do I enter a 1099 -R on a non-deductiable IRA tax free conversion to a Roth IRA The 1099 shows the amount as taxable and has the box 2b checked taxable amount not de in Retirement tax questions https://ttlc.intuit.com/community/retirement/discussion/how-do-i-enter-a-1099-r-on-a-non-deductiable-ira-tax-free-conversion-to-a-roth-ira-the-1099-shows/01/162271#M13094 Sat, 01 Jun 2019 12:24:05 GMT michaelcerr 2019-06-01T12:24:05Z How do I enter a 1099 -R on a non-deductiable IRA tax free conversion to a Roth IRA The 1099 shows the amount as taxable and has the box 2b checked taxable amount not de https://ttlc.intuit.com/community/retirement/discussion/how-do-i-enter-a-1099-r-on-a-non-deductiable-ira-tax-free-conversion-to-a-roth-ira-the-1099-shows/01/162271#M13094 Sat, 01 Jun 2019 12:24:05 GMT https://ttlc.intuit.com/community/retirement/discussion/how-do-i-enter-a-1099-r-on-a-non-deductiable-ira-tax-free-conversion-to-a-roth-ira-the-1099-shows/01/162271#M13094 michaelcerr 2019-06-01T12:24:05Z The situation you described is also known as a back door... https://ttlc.intuit.com/community/retirement/discussion/the-situation-you-described-is-also-known-as-a-back-door/01/162273#M13095 <P></P><P> </P><P>The situation you described is also known as a back door Roth contribution.</P><P>A back door Roth is a term used to describe a method of funding a Roth IRA when your modified adjusted gross income (MAGI) is too high to allow you to directly contribute to a Roth IRA.&nbsp; A back door Roth consists of opening a Traditional IRA and making a fully non-deductible contribution to the Traditional IRA.&nbsp; The Traditional IRA can then be converted to a Roth IRA without any income limitations or restrictions on your MAGI.&nbsp; </P> <P> <SPAN>Here are the general steps you need to take to report this type of transaction in TurboTax, either the online or desktop version.&nbsp; First, take care of the <B>Traditional IRA contribution</B>:</SPAN> <BR /> </P><P></P><OL> <LI><SPAN>Enter “<B>IRA contributions</B>” in the search box located in the upper right corner of the program and initiate the search.</SPAN></LI> <LI> <SPAN>Your top search results will be a link to <B>Jump to</B> the section you need.</SPAN> </LI> <LI><SPAN>Check the box showing that you contributed to a <I>Traditional IRA</I>.&nbsp; Remember, that is where you initially put the money.</SPAN></LI> <LI><SPAN>The next screen asks you to verify that you contributed to a Traditional IRA, choose <B>Yes</B>.</SPAN></LI> <LI><SPAN>The next screen asks if the contribution was a repayment of a retirement distribution, choose <B>No</B>.</SPAN></LI> <LI>Next, enter the amount that was contributed to the Traditional IRA.</LI> <LI><SPAN>The next screen is a little tricky unless you read it carefully.&nbsp; It is asking if you “recharacterized” the contribution.&nbsp; This is different from a conversion, so the answer is <B>No</B>.</SPAN></LI> <LI>On the next screen (or two), there will be a question about whether you are covered by a retirement plan at work.&nbsp; Answer according to your situation.&nbsp; </LI> <LI>Following that, there will be a question about Excess IRA Contributions.&nbsp; Answer this according to your situation.</LI> <LI><SPAN>Now, we’re at an important step.&nbsp; The question will be, were there any nondeductible contributions to the IRA.&nbsp; The answer here is <B>Yes</B>.</SPAN></LI> <LI><SPAN>The next page asks for the basis of the Traditional IRA.&nbsp; If you have never made nondeductible contributions in the past and kept them in the IRA, your basis is <B>zero</B>.&nbsp; Otherwise, enter the amount shown as <B>total basis</B> on your most recently filed <B>Form 8606</B>. </SPAN></LI> </OL><P> </P><P>&nbsp;</P> <P> <SPAN>That takes care of the first part of the process.&nbsp; Next, you need to take care of the <B>conversion of the Traditional IRA to the Roth IRA</B>.&nbsp; When you do this, a Form 1099-R will be issued to report the conversion.&nbsp; You will simply enter the information from the Form 1099-R into TurboTax using these steps:</SPAN> </P> <P></P><OL> <LI><SPAN>Enter “<B>1099-R, distribution from an ira</B>” in the search box located in the upper right corner of the program and initiate the search.</SPAN></LI> <LI><SPAN>Your top search results will be a link to <B>Jump to</B> the section you need.</SPAN></LI> <LI><SPAN>Enter the information exactly as it appears on your Form 1099-R.&nbsp; Pay special attention to Box 2b, Box 7, and the IRA/SEP/SIMPLE check box.&nbsp; Click <B>Continue</B>.</SPAN></LI> <LI><SPAN>The next screen is a follow-up question asking whether you inherited the IRA.&nbsp; Answer <B>No</B>.</SPAN></LI> <LI><SPAN>The next screen asks what you did with the money.&nbsp; Answer <B>I moved the money to another retirement account</B>.</SPAN></LI> <LI><SPAN>Then, choose <B>I converted all of this money to a Roth IRA account</B> to answer the question that appears.&nbsp; </SPAN></LI> <LI><SPAN>Finally, there will be a final question to determine whether any of the money was moved back to the traditional IRA.&nbsp; Answer <B>No</B>.</SPAN></LI> </OL><P> </P><P> <BR /> </P> <P>One more note, if the Traditional IRA earned any money before it was converted to the Roth IRA, those earnings will be taxable on your return.&nbsp; </P> <P></P><BR /> Sat, 01 Jun 2019 12:24:08 GMT https://ttlc.intuit.com/community/retirement/discussion/the-situation-you-described-is-also-known-as-a-back-door/01/162273#M13095 AnnetteB 2019-06-01T12:24:08Z
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topic How do I enter a 1099 -R on a non-deductiable IRA tax free conversion to a Roth IRA The 1099 shows the amount as taxable and has the box 2b checked taxable amount not de in Retirement tax questions
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https://ttlc.intuit.com/community/retirement/discussion/how-do-i-enter-a-1099-r-on-a-non-deductiable-ira-tax-free-conversion-to-a-roth-ira-the-1099-shows/01/162271#M13094
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How do I enter a 1099 -R on a non-deductiable IRA tax free conversion to a Roth IRA The 1099 shows the amount as taxable and has the box 2b checked taxable amount not de
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https://ttlc.intuit.com/community/retirement/discussion/how-do-i-enter-a-1099-r-on-a-non-deductiable-ira-tax-free-conversion-to-a-roth-ira-the-1099-shows/01/162271#M13094
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The situation you described is also known as a back door...
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<P></P><P> </P><P>The situation you described is also known as a back door Roth contribution.</P><P>A back door Roth is a term used to describe a method of funding a Roth IRA when your modified adjusted gross income (MAGI) is too high to allow you to directly contribute to a Roth IRA.&nbsp; A back door Roth consists of opening a Traditional IRA and making a fully non-deductible contribution to the Traditional IRA.&nbsp; The Traditional IRA can then be converted to a Roth IRA without any income limitations or restrictions on your MAGI.&nbsp; </P> <P> <SPAN>Here are the general steps you need to take to report this type of transaction in TurboTax, either the online or desktop version.&nbsp; First, take care of the <B>Traditional IRA contribution</B>:</SPAN> <BR /> </P><P></P><OL> <LI><SPAN>Enter “<B>IRA contributions</B>” in the search box located in the upper right corner of the program and initiate the search.</SPAN></LI> <LI> <SPAN>Your top search results will be a link to <B>Jump to</B> the section you need.</SPAN> </LI> <LI><SPAN>Check the box showing that you contributed to a <I>Traditional IRA</I>.&nbsp; Remember, that is where you initially put the money.</SPAN></LI> <LI><SPAN>The next screen asks you to verify that you contributed to a Traditional IRA, choose <B>Yes</B>.</SPAN></LI> <LI><SPAN>The next screen asks if the contribution was a repayment of a retirement distribution, choose <B>No</B>.</SPAN></LI> <LI>Next, enter the amount that was contributed to the Traditional IRA.</LI> <LI><SPAN>The next screen is a little tricky unless you read it carefully.&nbsp; It is asking if you “recharacterized” the contribution.&nbsp; This is different from a conversion, so the answer is <B>No</B>.</SPAN></LI> <LI>On the next screen (or two), there will be a question about whether you are covered by a retirement plan at work.&nbsp; Answer according to your situation.&nbsp; </LI> <LI>Following that, there will be a question about Excess IRA Contributions.&nbsp; Answer this according to your situation.</LI> <LI><SPAN>Now, we’re at an important step.&nbsp; The question will be, were there any nondeductible contributions to the IRA.&nbsp; The answer here is <B>Yes</B>.</SPAN></LI> <LI><SPAN>The next page asks for the basis of the Traditional IRA.&nbsp; If you have never made nondeductible contributions in the past and kept them in the IRA, your basis is <B>zero</B>.&nbsp; Otherwise, enter the amount shown as <B>total basis</B> on your most recently filed <B>Form 8606</B>. </SPAN></LI> </OL><P> </P><P>&nbsp;</P> <P> <SPAN>That takes care of the first part of the process.&nbsp; Next, you need to take care of the <B>conversion of the Traditional IRA to the Roth IRA</B>.&nbsp; When you do this, a Form 1099-R will be issued to report the conversion.&nbsp; You will simply enter the information from the Form 1099-R into TurboTax using these steps:</SPAN> </P> <P></P><OL> <LI><SPAN>Enter “<B>1099-R, distribution from an ira</B>” in the search box located in the upper right corner of the program and initiate the search.</SPAN></LI> <LI><SPAN>Your top search results will be a link to <B>Jump to</B> the section you need.</SPAN></LI> <LI><SPAN>Enter the information exactly as it appears on your Form 1099-R.&nbsp; Pay special attention to Box 2b, Box 7, and the IRA/SEP/SIMPLE check box.&nbsp; Click <B>Continue</B>.</SPAN></LI> <LI><SPAN>The next screen is a follow-up question asking whether you inherited the IRA.&nbsp; Answer <B>No</B>.</SPAN></LI> <LI><SPAN>The next screen asks what you did with the money.&nbsp; Answer <B>I moved the money to another retirement account</B>.</SPAN></LI> <LI><SPAN>Then, choose <B>I converted all of this money to a Roth IRA account</B> to answer the question that appears.&nbsp; </SPAN></LI> <LI><SPAN>Finally, there will be a final question to determine whether any of the money was moved back to the traditional IRA.&nbsp; Answer <B>No</B>.</SPAN></LI> </OL><P> </P><P> <BR /> </P> <P>One more note, if the Traditional IRA earned any money before it was converted to the Roth IRA, those earnings will be taxable on your return.&nbsp; </P> <P></P><BR />
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