Backdoor roth contribution Jan 1-April 18 2023

[nancywho]

My husband didn't do 2022 roth IRA contribution during 2022 but did it now before April 15.  How do I need to report this in turbo tax 2022?  

I answered

Total 2022 traditional IRA contributions: $6000

Tell us how much of the above total contributions for 2022 you contributed b/w 1/1/23-4/18/23: $6000

Tell us if you switched or recharacterized any of the $6000 traditional IRA contribution for 2022 over to a Roth IRA contribution: NO

Let us know if you made and kept track of any nondeductible contributions to Aaron's traditional IRA from 2021 or prior years?  HOW TO ANSWER THIS?

[Hal_Al]

Let us know if you made and kept track of any nondeductible contributions to Aaron's traditional IRA from 2021 or prior years?  HOW TO ANSWER THIS?

This is not part of your tax return filing.  So it doesn't matter how you answer it.  It's an extra feature of the software.  TT will keep track of your  contributions for you. The info will be transferred to the next year, each year you use TT.  Answer no, if you are unable to input (you do not have records) data from previous years. 

[DanaB27]

If you made nondeductible contributions for 2021 or earlier that were still left in the traditional IRA, then you will answer “Yes”. On the next screen, you then will be able to enter the basis from your last filed Form 8606 line 14. 

If you didn’t have any prior year basis left in the traditional IRA, then you will say “No”

To enter the nondeductible contribution to the traditional IRA on your 2022 tax return:
 

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 2021 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).

Next year on your 2023 tax return to enter the 1099-R conversion that happened in 2023: 

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 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs