Late Backdoor Roth Conversion last year

Forum|Forum|4 years ago
February 22, 2022
13 replies
82 views

hi all - anyone successfully completed their form 8606 with the ONLINE version of Turbo Tax when doing a late backdoor Roth IRA conversion?

I converted 6k for 2020 and 6k for 2021 both in January of 2021. Now trying to file for 2021. I submitted the 8606 correctly for 2020 which shows a cost basis of 6k

The Form 8606 should look like this: https://www.whitecoatinvestor.com/ba...tutorial/#late

However I cannot get Turbo Tax to complete lines 7-11 on 8606. The rest of it appears correct except this part.

Appreciate any advice!

TurboTax Premier Online

MaryK4

Level 15

You need to enter your nondeductible traditional IRA contributions under Deductions & Credits (see below). This will create the missing 8606. It wounds like you have the 1099-R Roth entry correct so post if this does not work or you need any other help.

Backdoor Roth IRAs are not a special type of account. They are Roth IRAs that hold assets originally contributed to a regular IRA and subsequently held, after an IRA transfer or conversion, in a Roth IRA. A Backdoor Roth IRA is a legal way to get around the income limits that normally prevent high earners from owning Roths.

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bfetzer81Author

Level 2

Thank you. Sorry if I was not clear - I have already entered enter my nondeductible traditional IRA contributions under Deductions & Credits via my 1099-R.

I have the Form 8606 generated. My problem is that lines 8-12 on 8606 remain blank. My understanding is they are supposed to be filled out, however I cannot seem to enter anything in Turbo Tax that generates these lines 8-12 entry fields to populate.

But perhaps this is ok to have them blank if the rest is filled out, as below? That is my question.

MarilynG

Level 15

If lines 13 and 15 have an asterisk, it means that TurboTax tax used the separate Taxable IRA Distribution Smart Worksheet to do the calculation because you made traditional IRA contributions and distributions in the same year.

TurboTax leaves lines 6 through 12 blank if it uses the separate worksheet.

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JTM1121

Level 2

@bfetzer81

A year later, I am now in a similar situation you were in back in 2021 doing your 2020 taxes but I'm not entirely sure how to handle the contribution to the Traditional IRA absent the conversion. Do you simply just report the contribution to the Traditional IRA and report nothing related to the conversion until the following year?

DanaB27

Employee Tax Expert

Yes, you will enter your nondeductible traditional IRA contribution on your 2022 tax return and TurboTax will create the 2022 Form 8606 with a basis on line 14. This basis will be entered next year on your 2023 tax return when you report the conversion you made in 2023.

On your 2022 tax return

To enter the nondeductible contribution to the traditional IRA:

Login to your TurboTax Account
Click on "Search" on the top right and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the amount you contributed
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
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.
Enter your basis in the Traditional IRA from your 2021 Form 8606 line 14 (if you had a basis in the prior year)
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).

Next year on your 2023 tax return

To enter the Form 1099-R conversion:

Click on "Search" on the top right and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
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”
On the "Review your 1099-R info" screen click "Continue"
Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs