Traditional IRA to Roth IRA "backdoor" question

Hi,

I generally do the backdoor Roth IRA. I usually do the Traditional (non-deductible) and then immediately convert to Roth within a few weeks. I think in 2018 I forgot to do this, so did 2018 and 2019 amounts both in April of 2019.

So now the 2019 1099-R shows the combined amount, say $12,000.

Although TurboTax indicated "Good news, no taxes owed on this!" (since I checked that the entire amount was rolled over/converted to a Roth IRA), my refund lowered by ~$1,400.

Does this make sense? Did I do something wrong? Is this because my 2019 contribution was only $6,000 and so somehow I got taxed on the other $6,000?

Any guidance you give me would be great!

Thanks!

404

Level 15

Jul 12, 2020 1:10:29 PM

Did you report the 2018 non-deductible contribution on a 2018 8606 form line 1 as part of your 2018 tax return as required?

Did you enter the 2019 non-deductible contribution?

If both were entered properly in the IRA contribution interview properly for both years and you answered the 1099-R interview question that you had a non-deductible basis and entered the 2018 8606 line 14 amount then you should have a new 8606 form with the 2019 $6,000 on line 1 and the 8018 $6,000 on line 2 with the total on line 3.

If not, review your entries.

Level 2

Jul 13, 2020 5:29:42 AM

Thank you so much! I will double check!

The one thing I may not have done as entered that I track the non-deductible basis....

Why sign in to the Community?

Traditional IRA to Roth IRA "backdoor" question