Late backdoor roth how to report

[bearcat81]

TLDR: Using Turbotax; late backdoor roth (feb 2023 for tax year 2022), no previous backdoor roth, no 1099R since this comes jan 2023, is this correct and will turbotax generate an 8606, I'm using online, but thinking to do downloaded version. I've talked to turbotax, watched youtube, read several blogs but can't figure it out

Can someone help with a late contribution (jan1-April 18th 2023 for 2022 backdoor roth) turbotax for my 2022 taxes, I’ve talked to an agent, looked on the message board, tried to get one of their tax prepares to help but none of them can figure out how to do it through the software.

So I contributed $6000 in feb 2023 to my IRA immediately converted to a roth such that no money is left in the ira and invested it (ie late backdoor roth). I won’t get my 1099-R till jan 2023 as this is done by the calendar year, but you can contribute do a back door roth up until tax day. I have not previous done this in a prior year ie done a backdoor roth.

I am above the limit to directly do a roth so had to do a backdoor roth. I do not invest in my company plan.

So On turbotax I filled out my W2 portion. Then scrolled down to click on “traditional and roth IRA contributions” clicked edit

1. It says: “Select the kind of IRA you own or will contribute to for 2022. If you own or contribute to both a tradional and roth IRA, click both here, and we’ll work on your traditional IRA first”
2. My understanding is I just click traditional IRA and leave the roth IRA uncheck as the conversion was done in 2023 Feb for the 2022 tax year and the conversion gets report on my 8606 next year when I recieve my 1099R in jan 2023
3. No repayment of a retriement distribution so I select no
4. “tell us how much you contributed, enter the total amount you put into a traditional IRA for 2022, even if you later transferred some or all of it to a roth IRA
5. I put 6000 in the totally 2022 tIRA contributions and 6000 for the part that says between jan 1,2023 and april 18, 2023
6. I did not switch or recharacterize any of the contribution, so I select no
7. Retirement plan coverage; select no
8. Excess contribution… Selected no
9. Here is the part: I’m confused on: “ Any nondeductible contributions to your IRA, Let us know if you made and kept track of any nondeductible contributions to your tIRA from 2021 or prior years (this is not common)”
10. Do I select Yes, I made and tracked nondeductible contributions to my IRA or NO?
11. This is post tax earnings that went to the tIRA that I later converted over to a roth, so I don’t get the tIRA deduction
12. I think it is is YES?or No
13. If I select no->
14. “choose not to deduct IRA contributions, you have a 2022 tIRA contribution of 6000. You have the option of making all or part of your deductible IRA contributions nondeductible (although this is uncommon)
15. Do I select yes make part of my IRA contribution nondeductible or No, I’ll keep my deduction?
16. My understanding is I’d select YES
17. So I put in 6000 to make nondeductible
18. IRA deduction is 0
19. Will turbotax now generate an 8606?

[AnnetteB6]

Looking at your steps shown above, your step 9 answer would be 'no' if this 2022 contribution to a Traditional IRA is the first Traditional IRA you have opened.  If you had any prior Traditional IRA accounts where you had made non-deductible contributions, then you would select 'yes'.

Going through your remaining steps, you have elected to make your $6000 contribution non-deductible, which is the correct choice for having the back door Roth conversion be a non-taxable event on your 2023 tax return when you report the Form 1099-R that you will receive.  

Form 8606 should now be included as part of your return reporting the non-deductible basis in your Traditional IRA.