Do you need to report Roth contribution?

[VAer]

For example, John is single and his salary was $125k in 2022. In summer 2022, he made $2000 non deductible traditional IRA contribution(balance was $0 before the contribution) then immediately did Backdoor Roth Conversion for the $2000. In January 2023, John didn't make money from stock market for whole year 2022 and salary is his only income, now he was sure that he could contribute to Roth IRA directly, then John made $4000 Roth IRA contribution for year 2022 in January 2023.

Question: Does John need to report $4000 Roth contribution for tax return 2022? Or John only needs to report $2000 nonductible traditional IRA contribution and $2000 Backdoor Roth Conversion?

John does not need to worry about form 5498, correct?

Thanks.

[Mike9241]

direct Roth contributions should be entered in Turbotax so it can check for over contributions.  if none it doesn't get reported. 

[VAer]

@Mike9241 

Really? I don't remember anything about TurboTax, but on 1040 form of year 2022, I only see IRA distribution(line 4a), there is no line for IRA contribution.

https://www.irs.gov/pub/irs-pdf/f1040.pdf 

[AnnetteB6]

No, do not worry about Form 5498.  It is informational only and can be kept with your tax records.

As for the IRA contributions, both the $2000 non-deductible Traditional IRA contribution and the $4000 Roth IRA contribution should be entered into the tax return.  

The $2000 non-deductible Traditional IRA contribution must be entered in order to reconcile the Form 1099-R that is reporting the distribution of that money into a Roth IRA.  If the non-deductible contribution is not entered, then the distribution will be taxed.

As Mike9241 stated, the $4000 Roth contribution must also be entered so that TurboTax can advise you whether you were allowed to make a Roth IRA contribution directly based on income and other factors in your return.  If the contribution is not allowed for some reason, then you still can correct the situation without any taxes or penalties.  The contribution is not reported directly on your Form 1040.

@VAer 

[VAer]

@AnnetteB6 

Thanks for the information.

So I just need to let TurboTax know Roth IRA contribution amount, but TurboTax will not pass the Roth IRA information to IRS, correct?

In other words, if I file tax return by paper, manually enter information on the form (not relying on software), then there is no way for me to let IRS know Roth IRA contribution, correct? Since there is no information on 1040 form mentioning IRA contribution.

[AnnetteB6]

That is correct.  There is nothing on Form 1040 that reports a Roth IRA contribution and there is no additional form required from you that would report it.  

The IRS will be notified by the financial institution holding the Roth IRA that a contribution was made.  Form 5498 will report this information to the IRS after the due date of the current year's tax return.  

@VAer