Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Returning Member
posted Feb 28, 2021 8:40:41 AM

From 8606

Converted traditional IRA to Roth in 2020.

Made IRA Contribution in 2020, for 2020 

IRA "deemed" non deductible for 2020

Turbo Tax Netted Roth Conversion - non deductible IRA = Taxable income. 

Is that correct?

 

0 3 283
3 Replies
Level 15
Feb 28, 2021 8:44:08 AM

Is your 2020 non-deductible contribution on line 1 on the 8606?   If not then you failed to enter the contribution in the IRA contribution interview.

Returning Member
Feb 28, 2021 9:01:09 AM

yes non deductible portion is on form 8606 line 1

Level 15
Feb 28, 2021 9:14:06 AM

If you had prior year non-deductible contributions then they should be on line 2 and the total on line 3.

 

Since you made a contribution and distribution in the same year, the calculations for the taxable part will probably not be on the 8606 lines 6-15, but will be on the "Taxable IRA Distribution Worksheet".

 

You should look at that to see the calculations.

 

The taxable amount is the prorated nondeductible contribution applied to the ration  of the 2020 distribution and the remaining 2020 years end value of all Traditional IRA accounts (line 6 of the 8606 or line 4 of the worksheet - (whichever was used).