Reporting Late Backdoor Roth IRA Contributions in TurboTax

[tb001]

I'm in the process of completing a late backdoor Roth IRA contribution, and I'd like guidance on how to report it in TurboTax accurately.

My spouse performed a backdoor Roth IRA contribution for 2023 and 2024 simultaneously in 2024. Specifically, she invested $6500 for the previous year (2023) and $7000 for the current year (2024). Furthermore, she accrued $6.59 in interest in her traditional IRA account before converting all funds (including $6.59 interest) to a Roth IRA account.

Could someone please outline the steps to report these late backdoor Roth IRA contributions in TurboTax properly? I also need assistance on accounting for the interest gained before the late backdoor Roth contributions. 

I'm using TurboTax Deluxe Downloaded Software on Mac to file taxes and need guidance on accurately reporting late backdoor Roth IRA contributions.

Thank you in advance for your help!

[AnnetteB6 · Accepted solution]

For the 2023 tax return, all you need to report is the 2023 non-deductible Traditional IRA contribution of $6500.  Everything else will be reported on the 2024 tax return.

In 2024, you will report the 2024 non-deductible Traditional IRA contribution of $7000 and enter the information from Form 1099-R that will be issued to you in January 2025.  The Form 1099-R will show the total distribution amount including the income that was earned.  After you enter the Form 1099-R and indicate that the distribution was converted to a Roth IRA, only the income amount will be taxable.

Here are the step by step instructions for reporting a back door Roth IRA conversion in TurboTax.  Only complete step 1 for your 2023 tax return.

How do I enter a backdoor Roth IRA conversion?
 

[tb001]

Thanks for quick reply.