How to Report a Backdoor Roth IRA on TurboTax

TurboTax is a popular software used for preparing and filing taxes. The Backdoor Roth IRA permits you to know income limits by converting the traditional IRA into a Roth IRA. In case you are turning the Traditional IRA into a Roth IRA, then input the change correctly. In case you have done it the right way, then all the numbers will be correct. In this article, you will get to know how to report a Backdoor Roth IRA on TurboTax.

 

Steps to report TurboTax Backdoor Roth IRA

· Go to the tax return option.

· Press on the Search option given in the TurboTax Online.

· Type the IRA contributions in the given box.

· Press on the Jump to option.

· Press on the Traditional IRA option.

· It is located in the Traditional IRA and Roth IRA menu.

· Choose the Yes option.

· Below the Is This a Repayment of a Retirement Distribution option, select the No option.

· Enter the amount.

· Confirm the same to proceed.

After that, you need to ask TurboTax about the backdoor Roth conversion you have done. Here’s How:

· Find the 1099-R option.

· Press on the Jump to option.

· Go to the 1099-R menu, press on the Yes option.

· After that, move to the next step.

· You need to press on the Add Another 1099-R rather than the 1099-R Entries.

· Select to enter the information of the 1099-R manually by going through the guidelines.

· Below the Did You Inherit the IRA from IRA Custodian option, choose the No option.

· Below the What Did You Do With the Money from IRA Custodian, select the I moved the money to another retirement account option.

· After that, choose the option stating that you have converted all the sum to a Roth IRA account.

· Now, the 1099-R Entries menu opens on the screen.

· After going through these steps, type the details in the given field.

Steps for checking the tax results

· Press on the Tax Tools option.

· It is located on the left-hand corner of the display.

· Press on the Tools option.

· Select the View Tax Summary option.

· It is located on the Tool Center display.

· Press on the Preview my 1040.

· It is located on the left corner of the menu.

· In the column which is known as 1040 Postcard, you will get the Roth IRA given below the IRA distributions.

Tim Cross is from Ohio USA. Before he started writing blogs he went through various occupations such as teaching, programming and travelling. But his favorite job is writing blogs for antivirus technology for McAfee.com/Activate.

Source : Roth IRA on TurboTax