late backdoor Roth for 2023 and 2024

[Jeffz]

my wife made late backdoor Roth contribution in 2024 for both years of 2023 and 2024. 

we did not report it in 2024's tax return.

now I received 1099-R which just shows the total amount of contributions for both years. 

I am using Turbotax desktop version, cannot figure out how to report this.

really need help, thanks!

[DanaB27]

The contribution for 2023 should have been reported on your 2023 tax return and you should have a 2023 Form 8606 with a basis on line 14. This basis is entered into the 2024 return.

If you did not report the nondeductible traditional IRA contribution on your 2023 tax return then you will have to file a 2023 Form 8606 and sent it to the IRS.

To enter the nondeductible contribution to the traditional IRA for 2024:

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. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
11. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

To enter the 1099-R for the 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?" if you had any nondeductible contributions in prior years.
12. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

If you do not get the "Any nondeductible Contribution to your IRA?" question then please see Why am I unable to report my 2023 for 8606 basis?

[Jeffz]

thank you!

I still have a few questions. 

1. I did not report the contribution in 2023 tax return and so I don't have 2023 Form 8606. I will fill 2023 form 8606 to IRS now. Do I have to wait until IRS receives my 2023 Form 8606 before starting 2024 tax return?

2. Fidelity sent me one form 1099-R. "Gross distribution" and "taxable amount" are the same--the sum of contributions in 2023 and 2024. To enter the 1099-R for the conversion, do I enter the sum of the contributions (to match form 1099-R ) or only the contribution in 2024?

3. I followed your instruction and entered the sum of contributions. it went though. But when I checked the "form" in Turbotax, in Form 8606, Line 1 is empty; Line 8 is total sum of 2023 and 2024; Line 17 is the amount of the contribution in 2023; Line 18 (taxable amount) is the amount of contribution in 2024, which should be zero, Is there anything I did wrong?

[DanaB27 · Accepted solution]

1. No, you can start your 2024 return now.

2. You enter everything from the Form 1099-R as shown on the form (match the form).

3. It seems you didn't enter the nondeductible traditional IRA contribution for 2024 since you don't have an entry on line 1. Please review these steps to enter the contribution for 2024:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed for 2024
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
9. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).