Late backdoor Roth IRA contribution (2023 portion)

[koonsup]

My situation ;

1. March 2024 : I contributed T IRA $7500 and convert to Roth IRA within 1 week, which is 2023 portion.
2. I didn’t report this in 2023 tax return.
3. May 2024 : Receive Form 5498
4. Jan 2025: Received Form 1099-R

I reviewed guide and help, but still I am confused.

Please guide steps to report in TurboTax online version.

I didn’t do backdoor Roth IRA of 2024 portion and no plan.

Some expert says in community, do not amend 2024 Tax return for this, just mail the 8606 form.

Thaks for your support

[MarilynG1]

Your 1099-R will say code 2 in box 7 (or code 7 if your age is over 59 ½) . You should report your conversion for the year you receive this 1099-R:

• If you received this form in 2024, complete both steps below to report it on your 2024 taxes.
• If you'll receive this form in 2024, wait to report it on your 2024 taxes. In this case, only complete Step 1 below for your 2024 taxes. You’ll complete both steps next year when filing your taxes for 2024.

This link contains full instructions for Reporting a Back-Door Roth Conversion. 

[koonsup]

Thanks for quick advice.

There are two steps in the link ;

Which menu do I select to do Step 1 (Step 1:  Enter the Non-Deductible Contribution to a Traditional IRA ), from 2023 Tax Amendment?

I described my situation in the question, I need to report 2023 conversion.

Regards,

[koonsup]

Please help for my 2nd question.

Regards,

[DanaB27 · Accepted solution]

Since you didn't report the nondeductible traditional IRA contribution on your 2023 return you will follow the steps below on your 2023 amended return to create the 2023 Form 8606:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “IRA contributions” 
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed of $7,500
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. 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.
9. Enter your basis in the Traditional IRA from your 2022 Form 8606 line 14 (if you had a basis in the prior year)
10. 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).

You will need to enter the basis from your 2023 Form 8606 line 14 on your 2024 tax return when you enter the 2024 Form 1099-R for the conversion.

On your 2024 return:

1. Click on "Search" on the top right and type “1099-R”  
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. 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”
5. On the "Review your 1099-R info" screen click "Continue"
6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

[koonsup]

Thanks for your help.

9. Enter your basis in the Traditional IRA from your 2022 Form 8606 line 14 (if you had a basis in the prior year)

    : I don't have previous Form 8606, then do I put :0"?

If I follow the 2023 amendment return and create 2023 8606 form, TurboTax guide me to submit e-file?

Regards,

[DanaB27]

Yes, if you do not have a previous Form 8606 then you will enter $0.

You cannot e-file a prior year amendment. You will have to print and mail your amended return. Please see Can I e-file my federal Form 1040-X amended return?

[koonsup]

Thanks for your advvice.

I checked advice in community, it says I can submit previous tax amendmendment through e-file in TurboTax.

Is your advice that I can't submit through e-file for my situation only? 

Regards,

[DanaB27]

This applies to all prior year amendments. Our FAQ Can I e-file my federal Form 1040-X amended return? states:

"If you're amending your return for 2023 or earlier, you need to print and mail your amended return."

Therefore, this season you cannot e-file a prior year amended return.

[koonsup]

Thanks.

So I need to print 1040-X and Form 8606 after amendment in TurboTax and mail them to IRS together. am I right?

Regards,

[koonsup]

Please help for the above question.

Regards,

[DanaB27]

Yes, you need to print 1040-X and Form 8606 after amendment in TurboTax and mail them to IRS together.