I did backdoor Roth in 2025 and tried to follow the instruction but I get different questions which I don't see in the instruction.
In result, I see correct value in line 4a and 4b for form 1040 preview, but I see Schedule 2 line 8 & Form 5329 line 25 that I am penalized with 6% of the amount I did the backdoor Roth.
I should not be penalized with the backdoor Roth, and i want to know exactly which questions are impacting this result and how should I respond.
Here are the questions and my answer under Federal -> Deduction & credits -> Traditional and Roth IRA contribution
- Select the kinds of IRAs owned or contributed to for 2025. -> Traditional IRA
- Is this a repayment of a retirement distribution you received? -> No
- Enter amount -> entered the amount i contributed to IRA and then transferred to Roth account on the same day
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- Did you recharacterize any of the traditional IRA contributions for 2025 over to a Roth IRA contribution? -> No
- Did you contribute more money to this IRA than was allowed in 2024 or any previous year? -> No (I did backdoor Roth in 2024 as well, is the answer No correct?)
- Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years? -> Yes
- If you made any nondeductible contributions in prior years, look at your most recent Form 8606. Find the box called total basis and enter the number from that box below. ==> 0
Where am I doing wrong?
