Claiming non-traditional IRA catchup contributions...
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Level 1

Claiming non-traditional IRA catchup contributions to establish the basis

In 2020 I converted a traditional IRA to a Roth IRA which closed the traditional IRA. But then I contributed to a new traditional IRA I had to establish for catchup contributions so I could backdoor those into my Roth through conversion.  I lad to leave some $$$ in the new traditional IRA so the account would stay open.  These are non-deductible contributions. How do I claim them to establish my basis?

Thank you

2 Replies
Employee Tax Expert

Claiming non-traditional IRA catchup contributions to establish the basis

You will enter your nondeductible contributions to the traditional IRA and then enter the 1099-R you received for the conversion. TurboTax will ask questions about your basis.

 

To enter the nondeductible contribution to the traditional IRA:

  1. Login to your TurboTax Account 
  2. Click "Federal" from the left side of your screen
  3. Click “Deductions &Credits” on the top
  4. Scroll down to “Retirement and Investments” and click “Show more
  5. Scroll down to “Traditional and Roth IRA Contributions” and click “Start
  6. Select “traditional IRA
  7. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  8. Enter the amount you contributed
  9. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  10. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes
  11. If you had a basis in the Traditional IRA before then enter the amount.
  12. 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: 

  1. Click "Federal" from the left side of your screen
  2. Scroll down to “Retirement Plans and Social Security” and click “Show more
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA
  9. On the "Your 1099-R Entries" screen click "continue"
  10. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
  11. Answer the questions about the basis

 

 

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Level 1

Claiming non-traditional IRA catchup contributions to establish the basis

That worked perfectly, thank you so much!

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