Correctly Entering A Backdoor Roth

Forum|Forum|3 years ago
April 6, 2023
2 replies
44 views

Taxpayer and spouse each contributed $6k to a traditional IRA and immediately converted to Roth for the same amount.

MFJ

No other IRA balances.

I understand you must enter the contribution on the IRA contribution worksheet, and then enter the corresponding 1099-R as well.

However, where in the software do you "link" it all together so that there is no deduction, no taxable income from the 1099-R, and that the backdoor conversion is fully recognized?

ProSeries Professional

This topic has been closed for replies.

rbynaker

Level 13

On the IRA Info Wks for each of them you need to enter $0 as FMV at year end. That should throw all of the $6K basis to offset the 1099-R income.

Just-Lisa-Now-

Intuit Community Champion

Having a non-deductible IRA contribution on the 8606 triggers (in the background) that 1099R conversion to be non-taxable, you shouldnt have to do anything special for it to happen.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

Skylane

Intuit Community Champion

@Jim-from-Ohio provided these instructions last month

here is how I do it and it works great for me

1. Enter the traditional IRA contribution on the IRA worksheet

2. If then flows naturally to form 8606

3. Enter 1099-R Worksheet, make sure IRA box is checked

4. Scroll down to B-5, check that box that rolled over to Roth

The End

If at first you don’t succeed…..find a workaround

qbteachmt

Level 15

"1. Enter the traditional IRA contribution on the IRA worksheet as nondeductible"

Need that detail.

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