contributed to traditional IRA in March for last year

[2Double]

Hi, I am wondering what the steps are to filing under deduction and credits. Someone contributed to traditional IRA in March 2024 for the year 2023 and then converted to roth and then contributed to traditional IRA and converted to roth for 2024. How can I report it under deduction and credit? what to enter for how much contributed in 2024? should it be 2023+2024 contribution or only 2023? if I enter 2023+2024, it says I owe penalty. How do I specify the amount for the last year? thanks

[MarilynG1]

You would need to Amend your 2023 return to report the contribution to IRA and subsequent conversion to Roth done in 2024. 

For 2024, reporting a non-deductible IRA contribution, with a subsequent conversion to Roth is a two-step process.  The steps are outlined here in How to Enter a Back-Door Roth Conversion.

Here's detailed info about handling Excess Roth IRA Contributions.

@2Double 

[2Double]

Thank you for reply. I think I entered the contribution made in 2024 for 2023 in the form 8606 when I filed in 2024. At that time, I didn't have the form 1099-R obviously.

Now, the form 1099-R includes both 2023 and 2024 contributions. What do I do? Do I still need addendum for 2023 or just enter 2024 contribution under deduction and credit and keeping the form 1099-R in my return as I received ?  thanks

[DanaB27]

No, if you have a 2023 Form 8606 with the basis on line 14 then you do not need to amend your 2023 return. This basis is entered in the IRA contribution interview or in the retirement section when TurboTax asks “Any Nondeductible Contributions to Your IRA?”.

To enter the nondeductible contribution to the traditional IRA for 2024:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
9. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
10. 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).

To enter the Form 1099-R for the conversion: 

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Review your 1099-R info" screen click "Continue"
6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

For TurboTax Desktop instructions please see How do I enter a backdoor Roth IRA conversion?