How do I enter a backdoor Roth IRA conversion?--Updated Instructions Please

[AnnetteB6]

If you did the conversion in 2023, then you should receive a Form 1099-R for 2023 showing the distribution from the Traditional IRA.  You will report the distribution and subsequent conversion to the Roth IRA on your 2023 tax return.  

The only thing that needs to be reported on your 2022 return is the non-deductible Traditional IRA contribution that you made in preparation of converting it to a Roth IRA later.

@edietrich120 

[blevealeve]

This is missing so many steps and what is in Turbo Tax Premier is not clear at all.  There is no mention at all for some of the screens in these directions and the directions in the Turbo Tax app don't make sense.  Turbo Tax make the product, this definitely could be more clear and provide screen shots. 

Enter or verify the value(ending balance amount) of all of X's traditional IRA accounts on December 31, 2022.  This information is sent by mail on Form 5498. 

Include any IRA contributions X made or will make in 2023 for 2022. 

But Form 5498 contains the information regarding the Roth side of the equation and not the Traditional so the Total amount on Form 5498 on December 31, 2022 is a very high amount that contains ALL of your prior contributions and gains for your Roth.  No form contains this information for the Traditional IRA that I see, it's not on the 1099-R.  This explanation in Turbo Tax doesn't make sense. 

Now if you go to a slightly better version of the directions here, but the screenshost are not all the same as what I see

How To Report 2022 Backdoor Roth In TurboTax (Updated)

He tells you that you need to put zero in this field, but that this is really the Traditional IRA that is being referred to and since everything is converted that there is really nothing in your Traditional IRA any longer.  But that is not always the case either.  My account is actually not quite empty due to some mistakes with my investment firm. 

[DanaB27]

Please be aware, there are two different value questions:

• One is during the IRA contribution interview if you have an excess contribution and it will say to include contribution made in 2023 for 2022. This will be used for Form 5329 to calculate the penalty. Here you need to use the value on December 31, 2022, plus any contributions you made in 2023 for 2022.
• The other one is in the retirement section and is used to calculate the nontaxable portion on Form 8606. Here you only use the value on December 31, 2022.

Generally, you can find the value on your end-of-the-year statement. If you have a balance left in the account then you cannot enter $0.

@blevealeve 

[this_is_so_fun]

Step 11 of recording the Traditional IRA contribution does not work for Web.  How can I record my Traditional to Roth IRA conversion?

[AnnetteB6]

The instructions referenced above and Here are still valid for 2023 tax returns.  

For step 11, if none of your Traditional IRA contribution is eligible to be deducted, then you will not see the message on the screen asking how much of it you want to make non-deductible.  Instead, all of the contribution will automatically be considered to be non-deductible.  

Please continue to follow the process and ask any additional questions you may have.

@this_is_so_fun