turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

JamEdd
Returning Member

Nondeductible IRA Contributions Ending up as Excess Contributions

I have IRA1, IRA2 and RothIRA (all on Vanguard)

  • IRA1 I've had for years and all money in there is pre-tax and have not contributed to it for years.
  • 2023-12 I created IRA2 and funded with 7500 (I'm over 50)
  • 2023-12 I created RothIRA
  • 2023-12 I did backdoor conversion from IRA2 to RothIRA

Entering information in these two sections...

  • Wages & Income->Retirement->IRA:  Entered information for backdoor conversion & all seems ok.
  • Deductions & Credits->Retirement->IRA:  Entered information for contributions.  Asks about non-deductible contributions from 2022 or prior years but not 2023.

Eventually I get to a "Your IRA Contribution Isn't Permitted" page (covered by plan at work).  Then it talks about a 6% penalty on the contribution every year it remains in the IRA.

 

I followed TurboTax Help's "How do I enter a backdoor Roth IRA conversion?" TurboTax Desktop option.

Step 1-10 says:  "When you reach the Choose Not to Deduct IRA Contributions screen, select Yes, make part of my IRA contribution nondeductible, enter the amount you contributed, then select Continue. If none of your contribution can be deducted, you will not see the option to make part of it nondeductible. Instead, the full amount of your contribution will automatically be nondeductible."

 

I never see this screen.  What am I missing?

Thank you.

 

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Reply
JamEdd
Returning Member

Nondeductible IRA Contributions Ending up as Excess Contributions

Figured it out I think.  I did this before entering w2 information.  Of course, if you don't enter earned income, then it will flag it as excess contributions.  After entering that, it seems to be corrected.  Form 5329 is no longer showing excess contributions.  Still haven't finished everything so the final review hasn't been done yet.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies