back door roth contribution

Forum|Forum|6 years ago
March 6, 2020
2 replies
27 views

can anyone share specific input instructions for entering a distribution on a 1099-R that was a back door roth contribution?

Lacerte Tax

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George4Tacks

Level 15

Most of what you need to know is here https://proconnect.intuit.com/community/help-articles/help/conversion-of-a-traditional-ira-to-a-roth-ira/00/3581

and here https://proconnect.intuit.com/community/help-articles/help/entering-a-basis-in-roth-or-traditional-ira/00/5844

Answers are easy. Questions are hard!

itonewbie

Level 15

Many who raised similar questions in the past had assumed backdoor conversion is a tax-free transaction. It is not.

Even if the taxpayer had only one brand new IRA account, made nondeductible contribution, and immediately converted the IRA to ROTH with no earnings or loss, there is no taxable income from the conversion not because it's not taxable but only because there is no taxable income to recognize.

And even if the taxpayer is converting an amount below the basis in the IRA, the taxpayer still cannot treat the conversion as coming only from the basis.

---------------------------------------------------------------------------------Still an AllStar