☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Mar 22, 2025 5:37:13 PM

Turbotax is not understanding that I performed a backdoor roth conversion

In 2024 I performed my first ever traditional to roth backdoor roth ira conversion. 1. First created a new traditional ira to function as nothing but a way to backdoor roth. 2. Transferred $7000 of after-tax bank account money into this new traditonal ira, 3. immediately sent all $7000 to an existing roth ira. 

 

Turbotax understands that I took a "distribution" of $7000 from a traditional ira (and that the money is both nondeductible and nontaxable). But it is not filling in any information in box 8 (amount converted from traditional to roth) of form 8606, thus not filling in any information for Part II (roth conversion related) of form 8606.


I don't know how I need to answer in which section to trigger a corrected change. It won't let me just open the 8606 in turbotax desktop version to input the numbers manually. Any help is appreciated, thank you.

0 1 4084
1 Replies
Expert Alumni
Mar 22, 2025 5:42:09 PM

There are 2 separate steps to report a backdoor Roth conversion.  First, enter the non-deductible IRA contribution in the Deductions and Credits section.  Next, enter the conversion from the 1099-R in the Wages and Income section. It sounds like you still need to enter the first step, the nondeductible IRA contribution. Here are the full steps to report a backdoor Roth in TurboTax Online, from How do I enter a backdoor Roth IRA conversion?:

 

"Step 1:  Enter the Non-Deductible Contribution to a Traditional IRA

  1. Go to Deductions & Credits
  2. On the Your tax break screen, locate and select the Retirement and Investments section, then select Start or Revisit next to Traditional IRA and Roth IRA.
  3. On the Traditional IRA and Roth IRA screen, check the Traditional IRA box and select Continue.
  4. On the Is This a Repayment of a Retirement Distribution? screen, select No.
  5. On the Tell Us How Much You Contributed screen, enter the amount contributed and select Continue.
  6. On the Did You Change Your Mind? screen, select No, then answer the questions on the following screens.
  7. When you reach the Choose Not to Deduct IRA Contributions screen:
  8. Select Yes, make part of my IRA contribution nondeductible.
  9. Enter the amount you contributed.
  10. If none of your contributions can be deducted, you won't see the option to make part of it nondeductible. Instead, you will see the message Income Too High To Deduct an IRA Contribution, and the full amount of your contribution will automatically be nondeductible.
  11. Select Continue.
  12. On the Your IRA Deduction Summary screen, review the info and select Continue.

Step 2:  Enter the Conversion from a Traditional IRA to a Roth IRA

  1. Go to Wages & Income.
  2. On the Your income and expenses screen, locate and select the Retirement Plans and Social Security section, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
  3. Answer Yes to Did you get a 1099-R in 2024?, then Continue.
  • If you land on the screen Review your 1099-R info select Add Another 1099-R.
  1. Select how you want to enter your 1099-R (import or choose Change how I enter my form to either upload it or type it in yourself) and follow the instructions.
  2. Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
  3. Select I converted some or all of it to a Roth IRA and Continue.
  4. Next, choose Yes, all of this money was converted to a Roth IRA and Continue..
  5. Continue answering questions until you come to the screen Review your 1099-R info."