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posted Mar 1, 2025 3:13:38 PM

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

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. 

 

0 2 2672
2 Replies
Expert Alumni
Mar 2, 2025 6:04:36 AM

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

 

 

Level 15
Mar 2, 2025 6:35:04 AM

"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.