The back-door Roth IRA process is a two step process. Let us know if you followed the steps below and where you believe the error might have occurred. Here are the steps to follow to enter your back door Roth IRA conversion. The steps are for TurboTax online. Below will be a link to a TurboTax article that will explain not only how to enter a back door Roth IRA conversion using TurboTax online but also TurboTax desktop. TurboTax Online Step 1: Enter the Non-Deductible Contribution to a Traditional IRA Open your return if it’s not already open Inside TurboTax, search for ira contributions and select the Jump to link in the search results Select Traditional IRA on the Traditional IRA and Roth IRA screen and Continue Answer No to Is This a Repayment of a Retirement Distribution? On the Tell Us How Much You Contributed screen, enter the amount contributed and continue Answer No on the Did You Change Your Mind? screen Answer the questions on the following screens, until you reach Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible and Continue Step 2: Enter the Conversion from a Traditional IRA to a Roth IRA Inside TurboTax, search for 1099-r and select the Jump to link in the search results Answer Yes to Did you get a 1099-R in 2021?, then Continue If you land on the Your 1099-R Entries screen, select Add Another 1099-R Select how you want to enter your 1099-R (import or type it in yourself) and follow the instructions Answer None of these apply when you reach the screen Do any of these situations apply to you? Select I converted some or all of it to a Roth IRA on the Tell us if you moved the money through a rollover or conversion screen Next, choose Yes, all of this money was converted to a Roth IRA Continue answering questions until you come to the Your 1099-R Entries screen To check the results of your backdoor Roth IRA conversion, see your Form 1040: On the left side of your screen, select Tax Tools, then Tools Under Tool Center, select View Tax Summary On the left side of your screen, select Preview my 1040 Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a as IRA distributions Taxable amount should be zero unless you had earnings between the time you contributed to your Traditional IRA and the time your converted it to Roth IRA, then the earnings would be taxable Schedule 1, Line 20 IRA deduction, should be blank Select Back on the left side of your screen to return to where you left off in TurboTax How to Enter a Back Door Roth IRA Conversion @dcharoen1010

Question

How do I change this? I've followed instructions for back-door roth. Line 4b of the 1040 should be $0, but it kept showing $7,000 as taxable amount.

Forum|Forum|4 years ago
March 14, 2022
2 replies
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TurboTax Premier Online

G

GeorgeM777

The back-door Roth IRA process is a two step process. Let us know if you followed the steps below and where you believe the error might have occurred.

Here are the steps to follow to enter your back door Roth IRA conversion. The steps are for TurboTax online. Below will be a link to a TurboTax article that will explain not only how to enter a back door Roth IRA conversion using TurboTax online but also TurboTax desktop.

TurboTax Online

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

Open your return if it’s not already open
Inside TurboTax, search for ira contributions and select the Jump to link in the search results
Select Traditional IRA on the Traditional IRA and Roth IRA screen and Continue
Answer No to Is This a Repayment of a Retirement Distribution?
On the Tell Us How Much You Contributed screen, enter the amount contributed and continue
Answer No on the Did You Change Your Mind? screen
Answer the questions on the following screens, until you reach Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible and Continue

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

Inside TurboTax, search for 1099-r and select the Jump to link in the search results
Answer Yes to Did you get a 1099-R in 2021?, then Continue
- If you land on the Your 1099-R Entries screen, select Add Another 1099-R
Select how you want to enter your 1099-R (import or type it in yourself) and follow the instructions
Answer None of these apply when you reach the screen Do any of these situations apply to you?
Select I converted some or all of it to a Roth IRA on the Tell us if you moved the money through a rollover or conversion screen
Next, choose Yes, all of this money was converted to a Roth IRA
Continue answering questions until you come to the Your 1099-R Entries screen

To check the results of your backdoor Roth IRA conversion, see your Form 1040:

On the left side of your screen, select Tax Tools, then Tools
Under Tool Center, select View Tax Summary
On the left side of your screen, select Preview my 1040
- Your backdoor Roth IRA amount should be listed on Form 1040, Line 4a as IRA distributions
- Taxable amount should be zero unless you had earnings between the time you contributed to your Traditional IRA and the time your converted it to Roth IRA, then the earnings would be taxable
- Schedule 1, Line 20 IRA deduction, should be blank
Select Back on the left side of your screen to return to where you left off in TurboTax

How to Enter a Back Door Roth IRA Conversion

@dcharoen1010

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B

barry13

I'm having the exact same problem. I can't figure out why Line 4b is not zero. I have not been converting every year, but sometimes every other year. So while the previous contribution from 2023 is still sitting in the Traditional non-deductible IRA accumulating a little interest, which will be taxable, the majority of the contribution from the previous year should still not be deductible. Anyone have any ideas what is going on? This has worked perfectly fine in past years. I'm using TT 2024 Home & Business.

B

barry13

Thanks for the prompt reply. I deleted my 1099-R and then re-imported it. The odd thing is that when I answer all the questions related to my 1099-R, TurboTax says "Good Job! This is not taxable!". While the amount of federal tax I owe did decrease, TT 2024 still displays the same amount of money in Line 4b, indicating that my entire backdoor IRA conversion is still taxable. My 2023 basis for my traditional IRA was $0.

Btw, I also contributed $8000 to my nondeductible IRA in 2025 which was applied to 2024.

Oddly, the 1099-R for my wife does not show the prompt "Good Job! this is not taxable!", yet her conversion does not show up on Line 4b as taxable!

Figured out why this was occurring. I made a mistake on my 2023 Form 8086. Line 4 was zero when it should have been $8000. I forgot to enter my contribution for 2023 that was made between 1/1/2024 and 4/15/2024.

So I adjusted my basis for my traditional IRA in my 2024 return and added an explanation that this was due to an error in 2023 Form 8086. In the Turbotax Home & Business edition that I'm using, when you see the prompt asking you about the basis for your traditional IRA, there is an "Easy Guide to determine your basis" -- click on this and then make the adjustment. Once TT sees the adjustment, it will prompt you to "prepare and explanation" for the adjustment.

Once I entered my new basis of $8000 (instead of zero), Line 4b went to zero and my Backdoor Roth conversion was no longer considered "taxable".

M

MCDXB

Hi @GeorgeM777

I followed your instructions and was able to get the results verified in my 1040.

However, when I review my Fed return, I am getting an error in my "IRA Contributions Worksheet" per the attached picture. Any help here?

B

BrittanyS

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:

TurboTax Online:

Sign into your online account.
Locate the Tax Tools on the left-hand side of the screen.
A drop-down will appear. Select Tools
On the pop-up screen, click on “Share my file with agent.”
This will generate a message that a diagnostic file gets sanitized and transmitted to us.
Please provide the Token Number that was generated in the response.

TurboTax Desktop/Download Versions:

Open your return.
Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” *
This will generate a message that a diagnostic copy will be created. Click on OK and the tax file will be sanitized and transmitted to us.
Please provide the Token Number (including the dash) that was generated in the response.

*(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)

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