Backdoor Roth Conversion Showing As Taxable

pirateforhire — Tue, 10 Feb 2026 11:00:19 GMT

I do Backdoor Roth Conversions every year, but this year is a bit more complicated. This year, I had a 401k which I rolled over to an IRA (pre-tax dollars). I then did a ROTH IRA conversion on all of those funds (submitting an estimated tax payment on the conversion). As such, my total IRA balance for the end of this year is $0, the pro-rate rule should not apply and I've paid all necessary taxes to convert my IRA to a ROTH IRA.

My IRA contribution for the backdoor ROTH conversion was $6500. My MAGI is over the IRA deduction limit, so my entire contribution by definition must be all post-tax dollars (which, it is). The total value of all of my Traditional IRAs on December 31st, 2023 was $0, the pro-rata rule should not apply either.

My 1099-R for my backdoor ROTH conversion shows the gross distribution amount ($6500.80) as the taxable amount, with "taxable amount not determined" checked. This is fine, but Turbo Tax is not correctly determining the taxable amount to be $0.80 rather than the full $6500.80.

I've looked through several posts & guides on submitting a backdoor ROTH conversion, but it is still showing as taxable. I previewed my 1040 and I can confirm that it's listing my entire contribution as taxable currently.

How do I get turbo tax to recognize that my IRA contribution, and subsequent backdoor ROTH conversion, is not taxable on the full $6500.80?

Thanks!

Re: Backdoor Roth Conversion Showing As Taxable

pirateforhire — Fri, 23 Feb 2024 16:18:41 GMT

Well I'm not sure what I did, but the issue appears to be resolved now. I'm not aware that I changed anything about my IRA contribution or ROTH conversion, but I did proceed with filling out more of my tax return. It's possible that filling out more of the information may have helped turbo tax correctly determine that my IRA contributions for my backdoor ROTH conversions are not taxable.

topic Backdoor Roth Conversion Showing As Taxable in Retirement tax questions

Backdoor Roth Conversion Showing As Taxable

Re: Backdoor Roth Conversion Showing As Taxable