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Level 2
posted Mar 27, 2022 7:43:12 AM

Backdoor Roth Conversion 2021 - Form 8606 & Taxable IRA Distribution Worksheet Issue

Note - I am using CD of Turbo Tax Premier.

 

I contributed $6000 to Traditional IRA in 2021, and then converted the same into ROTH IRA in 2021. I don’t have any Traditional IRA basis prior to 2021. Now, I am trying to fill up the 8606 and have few issues.

My current form 8606 looks as below:

 

The issue above is in Part -I – line 8 is not populated when it clearly says enter the amount you converted to ROTH IRA. Now – I understand the “Taxable IRA Distribution Worksheet” will have the calculations, but the Part – II – line 16 is empty too.

 

Now, if we look in the “Taxable IRA Distribution Worksheet” itself, here is how this looks. The amounts in line 5 & 6 are reversed, meaning the line 5 should say 0; and line 6 should say 6000, correct?

 

0 5 1592
1 Best answer
Expert Alumni
Mar 27, 2022 11:13:36 AM

It looks like it is treating your conversion from the traditional IRA to a Roth as just a normal distribution. Check your entries for the 1099-R:

  1. Search for 1099-R and select the Jump to link in the search results.
  2. Continue through the screens to import or edit your 1099-R form.
  3. The IRA/SEP/SIMPLE box is checked.
  4. When asked What did you do with the money? select  I did a combination of rolling over, converting, or cashing out the money. Enter the money converted to a Roth and Continue.
  5. After a few more screens, it will ask Any Nondeductible Contributions to Your IRA? If you had a basis in your traditional IRA account, you may enter it here as well as the starting and ending values of the IRA so TurboTax can determine the taxable amount of the conversion. 

 

5 Replies
Expert Alumni
Mar 27, 2022 11:13:36 AM

It looks like it is treating your conversion from the traditional IRA to a Roth as just a normal distribution. Check your entries for the 1099-R:

  1. Search for 1099-R and select the Jump to link in the search results.
  2. Continue through the screens to import or edit your 1099-R form.
  3. The IRA/SEP/SIMPLE box is checked.
  4. When asked What did you do with the money? select  I did a combination of rolling over, converting, or cashing out the money. Enter the money converted to a Roth and Continue.
  5. After a few more screens, it will ask Any Nondeductible Contributions to Your IRA? If you had a basis in your traditional IRA account, you may enter it here as well as the starting and ending values of the IRA so TurboTax can determine the taxable amount of the conversion. 

 

Level 2
Mar 27, 2022 5:42:00 PM

Thanks. The step #4 - looks like solved it. I am going to review it further closely and see if there are any other issues.

Level 2
Apr 10, 2022 6:49:26 AM

Just want to add that:

 

In the form #8606 - line #8 - "Enter the net amount you converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2021. Also, enter this amount on line 16" ==> This is still zero. 

 

The other lines in form 8606 - 1, 3, 5, 13, 16 & 17 - all has $6000 populated.

Level 2
Apr 11, 2023 9:25:44 PM

Curious whether this last comment was resolved. I have a similar situation where line 8 on my Form 8606 is still blank and results in lines 9-12 being blank. The rest of the form seems correct. Interestingly line 16 and line 17, which reference lines 8 and 11, respectively are filed out correctly with $6,000.

 

Any help on if this is a TurboTax issue or a prompt in the wizard that can fix it?

Expert Alumni
Apr 12, 2023 11:08:41 AM

Please be aware if you have a * next to line 13 then TurboTax used Worksheet 1-1. Figuring the Taxable Part of Your IRA Distribution to calculate the nontaxable portion.

 

Please see Reporting your nontaxable distribution on Form 8606 for additional information.

 

@mamba7