Need help entering my Mega Backdoor Roth into TurboTax

[findingmyway]

Hello,  I performed a Mega Backdoor Roth in November.  The taxable portion (gains) of the transfer went to my traditional IRA and the non-taxable portion (my pre-tax contributions) went to my Roth IRA.  When entering the information into TurboTax, the step-by-step tool only allows for one or the other.  No matter what I've done, I can't get things entered correctly to not have this taxed within TurboTax. I've tried going to the form directly but I get a bunch of red text when making changes in that form.  

Thanks in advance for any help you can provide.

[AnnetteB6]

When you are entering Form 1099-R into your tax return, the follow-up questions will allow you to enter the portion that was rolled into a Traditional IRA and the portion that was converted to a Roth IRA.

Look for the question that asks what you did with the money.  Answer I moved the money to another retirement account.

Then, choose I did a combination of rolling over, converting, or cashing out the money to answer the question that appears. 

Then enter the amount that was converted to the Roth IRA.  The remaining amount will be assumed to have been rolled into the Traditional IRA.

[findingmyway]

That makes sense, but I am not seeing that option.  That's okay, I figured out how to make it happen within the form itself. 

[kayingtse]

Would you mind sharing how to fix it on the form?  I'm running into the same problem.  Thank you!!!!!

[DanaB27]

If your Form 1099-R has code G in box 7 then you will have to split Form 1099-R into two separate Forms for TurboTax to handle this situation. One for the rollover to the traditional IRA and one for the conversion. As long as the total and distributions codes match entering it like this will not cause a problem.

1. Click on "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Enter the first 1099-R for the rollover into the traditional IRA:
   1. Box 1 Enter amount send to traditional IRA
   2. Box 5 blank
4. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
5. On the "Did you move the money to a Roth IRA?" screen answer "No"
6. Enter a second 1099-R for the conversion to Roth IRA:
   1. Box 1 Enter amount send to Roth IRA
   2. Box 5 enter amount listed on Form 1099-R
7. On the "Did you move this money from a 401(k) to a Roth 401(k)?" screen answer "No"
8. On the "Did you move the money to a Roth IRA?" screen answer "Yes"

@kayingtse 

[akash3664]

 Box 2b check => there are two options for Box2b, do we need to check both of them?(Even if they are not checked in in the original form)?

1.Taxable amount not determined box is checked

2. Total distribution is checked

[DanaB27]

If not checked on your form then you will not check the "Taxable amount not determined" box.

[kayingtse]

Thank you so very much!!!

[Anonymous]

would you care to explain why you check the taxable amount not determined even if it is not checked on the original 1099R..  I entered the 2 1099R as you described and it worked perfectly.  I get the same result if I check the box as you suggest or just leave it as the original shows.  This is why I am asking the purpose of it.  

I also have another question.  When I split the 1099R into 2 1099R as you describe TT adds the word ROLLOVER next to 5b where it does not have that when I enter the original 1099R as it was received.  

Thanks for your help in advance. 

[DanaB27]

TurboTax uses the information from Form 1099-R and the follow-up questions to determine what is taxable. If the Box 2b. Taxable Amount Not Determined is checked it means custodian does not know the information but TurboTax is able to calculate the taxable part for you.

Yes, TurboTax will put rollover next to 5b for a rollover. 

@Anonymous