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mdberes
New Member

Traditional IRA contribution 2022, conversion in 2023 question

I contribution $6,000 to a traditional IRA in 2022, but only converted $5,500 to a Roth (via "backdoor Roth" contributions) of it accidentally. The remaining $500 was converted to a Roth on Jan 3 2023. 

I then contributed the maximum amount ($6500) to a traditional and converted to Roth via backdoor in 2023. 

My 1099-R is showing a $7,000 distribution and my 5498 is showing a $7,000 conversion amount. 

How do I properly file/apply $500 of that to 2022, and the rest to 2023, especially since the contribution was in 2022, but the conversion wasn't until 2023?

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1 Reply
DanaB27
Expert Alumni

Traditional IRA contribution 2022, conversion in 2023 question

You will need to make sure that your basis from line 14 of your 2022 Form 8606 is carried over in the 2023 return (steps 9 and 10 during the IRA contribution interview or steps 11 and 12 in the retirement interview).

 

To enter the nondeductible contribution to the traditional IRA:

 

  1. Open your return
  2. Click “Deductions &Credits” on the top
  3. Click "I'll choose what to work on"
  4. Scroll down to “Traditional and Roth IRA Contributions” and click “Start
  5. Select “traditional IRA
  6. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  7. Enter the amount you contributed
  8. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  9. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had nondeductible contributions before this tax year
  10. Enter your basis in the Traditional IRA from your 2022 Form 8606 line 14 (if you had a basis in the prior year)
  11. 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 1099-R conversion: 

 

  1. Click "Federal Taxes" on the top and select "Wages & Income"
  2. Click "I'll choose what to work on"
  3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)
  4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
  5. Click "I'll Type it Myself"
  6. Choose "Form 1099-R, Withdrawal of Money from 401(k) Retirement Plans, Pensions, IRAs, etc."
  7. Click "Continue" and enter the information from your 1099-R
  8. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  9. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
  10. On the "Your 1099-R Entries" screen click "continue"
  11. Answer "yes" to "Any nondeductible Contribution to your IRA?" if you had any nondeductible contributions in prior years.
  12. Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

 

If you are using TurboTax Online review these instructions: How do I enter a backdoor Roth IRA conversion?

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