Received 1099-R from FIDELITY with 2 years of early distribution

[DDhane]

1) I did (started) a backdoor Roth IRA (contributed to tradition IRA and converted to Roth IRA) and for years 2023 and 2024 in March of 2024. Now, I have received 1099-R for year 2024 with early distribution of $13,500.

On TURBOTAX, Under "deduction & credits" I did make the IRA contribution ($7000) non-deductible for year 2024. But how and where shall I report the after tax non-deductible contributions for 2023 for balancing out the reported early distribution of (6500 +7000 = 13500) on 1099-R ? 

2) I am filing my taxes jointly with my spouse. I filled  "retirement and investments section" under "deduction & credits" for year 2023 correctly. 

[DanaB27]

You can enter your prior year basis, from your 2023 Form 8606 line 14, either during the IRA contribution interview (steps 8 & 9) or in the retirement section (steps 8 & 7). You should get the question "Any nondeductible Contributions to your IRA?" If you do not get the question then please see Why am I unable to report my 2023 for 8606 basis?

To enter the nondeductible contribution to the traditional IRA:

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
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 2023 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).

To enter the Form 1099-R conversion: 

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

[dmertz]

"But how and where shall I report the after tax non-deductible contributions for 2023"

That was reportable on your 2023 tax return on 2023 Form 8606.  The 2023 Form 8606 will have $6,500 on line 14 which transfers to line 2 of your 2024 Form 8606.

If your 2023 tax return failed to include the 2023 Form 8606, you'll need to amend.

[Sparrokk]

Actually I have a similar situation for 2025.  So I need to amed 2024 return, I guess.

But I have only 1 1099-R from fidelity for year 2025.

I contributed 8000 in Mar 2025 for tax year 2024 which immediately converted to Roth IRA

and 8000 in Sept 2025 for tax year 2025 (also converted to Roth IRA in the same month).

1) Do I need to add $8000 under wages and income in 2024 return? But I don't have corresponding 1099-R for that year though?  

2) I am able to mention add $8000 under Traditional and Roth IRA Contributions in Deductions and Credits. Is it sufficient to generate form 8606 for year 2024 and amend the return?

3) Since it is a nondeductible contribution to Traditional IRA and backgoor conversion to Roth, I don't think it will change any tax for year 2024, right?

[RogerD1]

1) When you did your 2024 return, did you report that you made a contribution in 2025 to a Traditional IRA?  And was all of that contribution non-deductible?  If so, then your 2024 return is OK and should be good to go.

2)  The form 8606 should have generated for 2024 if you reported a non-deductible traditional IRA contribution.

3)  The contribution you made for 2024 will be reflected correctly on that return.  As long as that contribution was completely non-deductible, there won't be any tax consequence for the Roth conversion made in 2025 for the traditional IRA contribution made in 2025 for 2024.

The following article has helpful information on Entering a Backdoor Roth in TurboTax.

[dmertz]

"Do I need to add $8000 under wages and income in 2024 return?"

Your 2024 tax return should have included the $8,000 traditional IRA contribution made for 2024.  If it did not, you need to amend to include that.  With the traditional IRA contribution being nondeductible, your 2024 tax return needed to include Form 8606 Part I and line 14 would show the $8,000 of basis that carries forward to 2025.  This will not change your 2024 taxable income or your 2024 tax liability.

"But I don't have corresponding 1099-R for that year though?"

The $8,000 contributed to the traditional IRA for 2024 (along with the $8,000 contributed to the traditional IRA for 2025) was converted to Roth in 2025, not 2024.  Roth conversions are reportable on the tax return for the year in which the conversion was performed, so you should have a 2025 Form 1099-R that includes both conversions.