Backdoor to Roth IRA 2019

[kata123]

I had put $7000 in traditional IRA in 2019, and converted that amount to Roth after few days, but when I fill information, a question asks me to "Enter Your Roth IRA Contribution. Enter total Roth contribution for 2019 even if you transferred or recharacterized some or all of it to traditional IRA." If I put $7000 for this question, it adds additional tax. Am I supposed to put 0 or $7000? 

[DanaB27 · Accepted solution]

Do not enter any contributions to the Roth IRA. Only enter contributions to the traditional IRA.

To delete the contributions to Roth IRA:

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Click “Deductions &Credits” on the top
4. Scroll down to “Traditional and Roth IRA Contributions” and click “Edit”
5. Deselect "Roth IRA" and confirm the deletion.

Please see the instructions for entering a backdoor IRA for additional information:

To enter the nondeductible contribution to the traditional IRA:

1. Login to your TurboTax Account 
2. Click "Federal" from the left side of your screen
3. Click “Deductions &Credits” on the top
4. Scroll down to “Retirement and Investments” and click “Show more”
5. Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
6. Select “traditional IRA”
7. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
8. Enter the amount you contributed
9. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
10. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
11. If you had a basis in the Traditional IRA before then enter the amount.
12. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion: 

1. Click "Federal" from the left side of your screen
2. Scroll down to “Retirement Plans and Social Security” and click “Show more”
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan Withdrawals (1099-R)" 
4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
5. Click "I'll Type it Myself"
6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
7. Click "Continue" and enter the information from your 1099-R
8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account”
9. Then choose “I converted all of this money to a Roth IRA account.”
10. On the "Your 1099-R Entries" screen click "continue"
11. Answer "yes" to "Any nondeductible Contributions to your IRA?"
12. Answer the questions about the basis

[kata123]

Hi, I did everything that is mentioned in your response, but it still asks me question on Roth IRA contribution, even after I deselect Roth IRA, and logging off, and on few times. My contribution to traditional IRA is non deductible due to exceeding income limit.

[kata123]

I had "0" in "Enter your Roth IRA Contribution", and that was the reason for both traditional and Roth IRA checked even after saving and logging off. Once I removed "0" and left it as blank, everything is fine, and I do not see screen for "Enter your Roth IRA Contribution". Thanks, appreciate your step by step instruction.

[goyal_raj]

I contributed 6000 to my traditional IRA in Feb 2020 for year 2019 as a non deductible contribution. I then converted it to Roth IRA right away.

I entered the details as specified on this post, I entered 6000 for year 2019 under Traditional IRA. Also 6k under contribution between Jan to July 2020.

Next question about 'How much did you transfer i.e. switch or recharacterize', I did not enter anything as specified above.

Any excess contributions before 2019- i put zero

Next question- Any non deductible contributions to IRA? It asks if there are any contributions from 2018 or prior years. I enter zero because this contribution is for year 2019. So I enter zero. What should I enter here?

Is this  a repayment of retirement distribution- No

Now it says - Income too high for IRA deduction.

What am I doing wrong?

Which form should I fill? 8606 and if yes, what is my basis etc?

I do not have 1099 R since I have done it in Feb 2020 for 2019.

Part two:

I had a traditional IRA contribution done in 2019. I converted it to Roth IRA on Feb 2020. Do i have to do anything about it in this tax year?

Thanks

[AnnetteB6]

It sounds as if you have entered everything correctly.  Seeing the message about your income being too high to claim a deduction for your Traditional IRA contribution should be expected.  Continue forward after you see that message and indicate that you wish to make it a non-deductible contribution.  This will get the amount reported properly on your return.  

Since your conversion to the Roth IRA took place in 2020, there is nothing that you would report on your 2019 tax return other than the non-deductible Traditional IRA contributions.

@goyal_raj