Filing 2019 Conversion from IRA to Roth IRA when backdoor doesn't work

14 replies
64 views

Tried the backdoor conversion but it just adds the taxes we've already paid/had deducted onto our 1099-R "income." I know this is not correct so how do we proceed? I need some way to input the conversion amount and then input the federal and state taxes already paid when we made the conversion. Help please.

AnnetteB6Answer

Employee Tax Expert

Hello again. Yes, we just took a Traditional IRA and converted it to a Roth. Yes, we have a 1099-R which documents taxes withheld to both the Feds and State. Thanks. Hoping to hear more soon.

If you had an existing Traditional IRA and converted it to a Roth IRA, then reporting it on your tax return is just a matter of entering the information on your Form 1099-R (including the taxes that were withheld), and answering the follow-up questions in TurboTax. The program will take care of filling out the Form 8606 for you based on your answers to the questions.

After you enter your Form 1099-R that reports the distribution from your Traditional IRA, you should see a question that asks what did you do with the money. Answer that you 'moved it to another retirement account'. Then you will see another three options at the bottom of the screen, where you can choose 'converted the money to a Roth IRA'. After that you will be asked about the specific amount that was converted to the Roth, since part of it was withheld for taxes. Then, you will come back to the 1099-R summary screen.

After you leave that summary area, there are still more follow-up questions to answer. These will include questions about whether there were non-deductible contributions in the Traditional IRA that was converted, plus the total value of all IRA accounts. This is used to determine the taxable amount for your conversion and to fill out Form 8606.

Use the following steps to get started:

On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
This opens a box where you can type in “1099-R” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
The search results will give you an option to “Jump to 1099-R”
Click on the blue “Jump to 1099-R” link

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

MarilynG

Alumni - Intuit

You could Delete your 1099-R entry and re-enter it to see if this resolves your issue.

This link has instructions on How to Enter a Roth Back Door Contribution.

Contact Phone Support if the issue persists.

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

Cath1eenAuthor

Level 3

Hello again. Here is some additional information and some questions that may help with my issue.

The Backdoor sequence doesn't give any links or connections to Form 8606. How do I get to it because unless I can input the amount that was converted from IRA to Roth IRA the whole tax calculation will be incomplete or inaccurate.

Also, we have the exact amounts of taxes we had withheld from the Roth IRA Conversation - both for Federal and State returns. Where do we input that information AND how do we get to those forms within TurboTax so that the calculations are done correctly?

We have already inputted other 1099-Rs, Social Security, etc. but until we can figure out how to input the amount of the Roth IRA conversion AND the Federal and State taxes we've already paid, we're stuck with a product that won't allow us to finish our taxes via TurboTax.

Thanks - hope to hear from you soon. Cath1een

AnnetteB6

Employee Tax Expert

It would help if you described in detail what you did.

Did you simply take a Tradtional IRA account and convert it to a Roth? Were taxes withheld and reported on your Form 1099-R or did you make estimated payments directly to the IRS and your state in anticipation of increasing your tax liability by converting the IRA to a Roth?

@Cath1een

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