I contributed to a Traditional IRA for first time and chose the year 2023 for the contribution i made in March 2024. Immediately i transferred it to Roth IRA.
I am following the instructions mentioned in this page for the Desktop Edition. Few observations/questions:
I am able to do the Step 1: Enter the Non-Deductible Contribution to a Traditional IRA
In the section "Tell Us How much you contributed" I have indicated that I contributed the whole amount between Jan 1 2024 and Apr 15 2024.
Issue 1: #10 in this step says When you reach the Choose Not to Deduct IRA Contributions screen. I don't see such screen. |
For Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA
Issue2: For Did you receive any 1099-R forms? I checked the broker and it shows that 1099-R will get generated around 5/31
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Issue 1:
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 you will not get the “Choose Not to Deduct IRA Contributions” screen. At the end of the IRA contribution interview you should see a screen saying $0 is deductible.
Issue 2:
The conversion will happen in 2024, therefore the "Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA" will have to be reported on your 2024 tax return when you get the 2024 Form 1099-R in 2025.
You will have a 2023 Form 8606 with a basis on line 14 which will be entered on your 2024 tax return when you enter the conversion.
Thank you for you feedback. It clarifies everything.
I hope they update the Turbotax documentation page with the following useful information which help people avoid confusion. >>
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 you will not get the “Choose Not to Deduct IRA Contributions” screen. At the end of the IRA contribution interview you should see a screen saying $0 is deductible.