IRA Contributions Worksheet Line 15

[backdoor]

I am performing the backdoor roth IRA, and am unable to submit with this discrepancy. 

It is wanting me to switch the non-deductible traditional IRA contributions to $5410 instead of $6000.

Checking the 8606 forms all numbers line up properly. I believe the $590 is from checking "retirement plan" on box 13 of W-2.

Earlier it told me I "can deduct only $590 of the $6000 contribution to a traditional IRA because  [I am] covered by a retirement plan at work and your modified AGI is between 105k-125k. The difference of $5410 is considered a non-deductible contribution"

Despite my going back and marking all contributions as nondeductible it is still placing the $590 as deductible, leaving me unable to file at the end.

[MarilynG1]

Did you go back to your W-2 entry and uncheck the 'Retirement Plan' box?  Do you have a Code W in Box 12 with an amount of $590? 

If you are using TurboTax Online, you may want to delete your IRA contribution entries and then close TurboTax, clear your Cache and Cookies and revisit the section. 

Doing a backdoor Roth conversion is a two-step process.

Click this link for steps on How to Enter a Back-Door Roth Conversion.

[backdoor]

Thank you very much for responding!

I did nto go back to the W-2s and uncheck the "retirement plan" box. I didn't know that was a viable option since it is checked on the W-2s we were sent.  And  all we have for box 12 is DD, but nothing for the amount of $590.

I am using a downloaded software of TT deluxe. I will go back and delete all the IRA contribution entities and re-enter them in exactly the order as on the webpage and see if that corrects it. If it doesn't then I will look to uncheck the box on the W-2/

[MarilynG1]

Yes, uncheck the Retirement Plan box on your W-2. 

From your post, you did not contribute to a plan at work (even though you employer may offer one).

[backdoor]

Hmm, I did participate in the 403b that is offered through my employer (they offer a match for that one). Would this precent me from unchecking this box?

These are completely separate from the backdoor Roth I am performing.

[DanaB27 · Accepted solution]

No, do not uncheck box 13 retirement plan if it is checked on your W-2 and have a retirement plan at work.

Please go back to the "Choose not to deduct IRA contributions" and enter $590 instead if $6,000.  $5,410 are already nondeductible because of the retirement plan at work and your income. You will just elect to make the rest of $590 nondeductible. After that all of your $6,000 contribution should be nondeductible.

To enter the nondeductible contribution to the traditional IRA:

1. Open your return
2. Click “Deductions &Credits” on the top
3. Click "I'll choose what to work on"
4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
5. Select “traditional IRA”
6. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
7. Enter the amount you contributed
8. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
9. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had nondeductible contributions before this tax year
10. If you had a basis in the Traditional IRA before then enter the amount.
11. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter "$590".

To enter the 1099-R distribution/conversion: 

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (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 “What Did You Do With The Money” and choose “I moved it to another retirement account”
9. 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"
10. On the "Your 1099-R Entries" screen click "continue"
11. Answer "yes" to "Any nondeductible Contribution to your IRA?"
12. Answer the questions about the basis and value

@backdoor

[backdoor]

Perfect! I made the changes you had recommended. I can see now and understand that the amount I am electing to make non-deductible is $590 because the other $5410 is already non-deductible.

The errors have resolved. I have checked Form 1040 and see $12k ($6k from myself and my wife) on line 4a, $0 in 4b.  Schedule 1 with line 20 blank. 

Review of form 8606 for both of us with $0 on line 15c and line 18.