Back door Roth conversion but it says income too high

Joseph_H — Wed, 12 Feb 2025 10:55:00 GMT

I made a $7000 non deductible contribution to an empty IRA in October 2024, and immediately converted to Roth IRA.

I then received a 1099r from Merill, and used it to report to TurboTax as income. In one of the steps it says my income too high, and the $7000 becomes an excess contribution (which is different from my understanding of back door conversion).

I must miss something when I entered these. Can someone please help? Thanks.

Re: Back door Roth conversion but it says income too high

MindyB — Wed, 12 Feb 2025 13:43:48 GMT

Yes. ‌It's ok that your income is too high. That makes the original IRA non-deductible by default, not by choice. The next step is to report the rollover.

Revisit the 1099-R you already entered — you can use the magnifying glass in the upper right of your screen, type "1099-R", and choose the first option "Jump to 1099-R"
Choose the page and magnifying glass icon next to the 1099-R from Merrill to edit it.
Continue until you reach the screen that says, "Did you roll over all of this $7,000.00 (Box 1) to another retirement account?". Answer "Yes"

Here are the full instructions to report a Backdoor Roth: How do I enter a backdoor Roth IRA conversion?

topic Back door Roth conversion but it says income too high in Retirement tax questions

Back door Roth conversion but it says income too high

Re: Back door Roth conversion but it says income too high