Backdoor Roth IRA

Forum|Forum|3 years ago
April 5, 2023
3 replies
17 views

I have been doing the backdoor roth IRA off and on since 2007. When TT asks what my nondeductible contribution is to my trad IRA, I have been entering in the rolling amount. I think this is wrong? I finally figured out how to deal with the backdoor roth IRA in TT. I think I'm supposed to enter 0 in that question. Is that correct? Do I need to correct that in all my previous tax submittals? Can I just zero it out now? I notice that when I zero it out, my CA state refund for me and my husband drops by $9000+. Why is that? If it's a nondeductible contribution, why do we owe more? It's nondeductible?

Another related question - my husband and I (50years old) each contributed $7000 to our trad IRA. When we converted to roth, the total amount was $14,158. The taxable amount should be $158. However, after I entered the info into TT, my Form 1040 line 4b says the taxable amount is 0. Why? What do I need to do to change that?

Thank you!

Ask the Experts - Refund - April 2023

RobertB4444

Level 15

Entering a backdoor roth in TurboTax is a two step process. Please follow the instructions located here.

Your 1099-R for the rollover should show $14,158 in box 1 and $158 in box 2a. If the numbers on your form are different than that then you need to consult with whoever issued the form to you and see if there is a reason for that.

@liu_helen-yahoo-

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

heliuAuthor

Level 2

Do I need to amend my previous tax years where I entered a rolling amount in TT's question about non-deductible contributions to traditional IRA basis since I had converted them all to roth the year that it happened? Or can I just say it's zero now? Why do I have pay $9000+ taxes on those contributions for my CA state taxes since they have always been non-deductible?

RobertB4444

Level 15

You don't need to amend the return.

California should not be taxing your backdoor roth amount. You need to go through your California return and see what is going on with it. Something has been entered incorrectly.

@heliu

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"