Traditional IRA to Roth IRA conversion for 2 years in one 1099R

[Praviin]

I contributed 7500 to Roth IRA directly in March of 2023 and later realized that I was not qualified due to my income. So I withdraw that amount to a newly created traditional IRA and moved to Roth IRA. 

Then for the year 2024 I contributed 8000 in Dec 2024 and moved to Roth.
My brokerage firm gave me 1099-R for Roth ( $7562) and a combined 1099-R for traditional IRA. 

How do I do the backdoor Roth Conversion with a single 1099-R and how do I include the additional gains from Roth IRA of $62 that should have been for the financial year 2023.

[ThomasM125]

For the backdoor IRA in 2024, you report a non-deductible contribution to a traditional IRA, then you enter the Form 1099-R that you received reporting the rollover to the Roth IRA. For the Form 1099-R reporting the withdrawal of funds from the 2023 Roth IRA contribution, you will have to amend your 2023 return by entering that form in 2023.

For the backdoor IRA in 2024, enter a traditional IRA contribution in the Deductions and Credits section of TurboTax, then Retirements and Investments, then Traditional and Roth IRA Contributions. Indicate that your traditional IRA contribution is non-deductible when asked in the program:

When you enter the 1099-R form in TurboTax, you need to first indicate that you moved the money to another retirement account and that you did a combination of rolling over, converting or cashing out the money. Then, enter the amount converted to a ROTH IRA. Later on you need to indicate that you tracked non-deductible contributions to your IRA.

To enter the refund of excess IRA contributions received in 2024 for 2023 contributions on your 2023 amended return, follow these steps:

1. Go to the personal income section of TurboTax 
2. Find the Retirement Plans and Social Security menu option in the Wages and Income section of TurboTax
3. Start or Update IRA, 401(k), Pension Plan Withdrawals (1099-R)
4. Choose Add Another 1099-R
5. Choose I'll type it in myself
6. On the screen that says Tell Us Which 1099-R You Have choose I need to prepare a Substitute 1099-R
7. Enter the distribution amount in box 1 of the substitute 1099-R
8. Enter the earnings in box 2(a)
9. Enter code "8" in box 7 and code "J" 

[Praviin]

I am not getting the screen "Choose Not to Deduct IRA Contribution"  have primer version on Mac. Is there any other way to get to this screen

[DanaB27]

If you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you will not get the screen "Choose Not to Deduct IRA Contribution". Instead  you only get a warning that your income is too high to deduct the traditional IRA contribution and then a screen saying $0 is deductible. 

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