Backdoor Roth IRA - TurboTax

[@eataxresolutions]

Hello Everyone! Just as a reminder if you have a question about TurboTax or filing I will be doing these Live Streams every Monday at 4PM PST. Be sure to stop by and ask your question in chat so I can help you out! If you want to help our channel outplease use TurboTax through our link! Our TurboTax Link: www.tkqlhce.com/click-100683865-11557904?url=https%3A%2F%2Fturbotax.intuit.com%2Flp%2Faff%2F4049%3F%26priorityCode%3D6099000412

[@bs9757]

Question: At 4:58... Why does Box 2a show $6,000 as Taxable Amount? This threw me off, because my 1099-R is blank in Box 2a, and I understood this shouldn't be marked as taxable. Could you let us know? Thanks!

[@moondust3526]

This is supremely helpful. So so glad to have this aide for this year - last year I couldn't find anything this straightforward. Thanks a bunch for providing this!

[@eataxresolutions]

Glad it was helpful!

[@colinoverweg]

I'm a CFP® pro and a lot of my clients do backdoor Roth IRAs. This is best video I can find explaining how to input the information into TurboTax. Thank you!

[@eataxresolutions]

Glad it was helpful!

[@jonathansorkin1791]

Thank you very much for this step-by-step explanation on back door Roth input using TurboTax. You saved me $100 by not needing to upgrade to Live assistance!

[@eataxresolutions]

Glad I could help!

[@laurenm2010]

Incredibly helpful! Thank you for breaking it down step by step and doing a share screen!

[@MarkAuchtung]

Thank you so much! I don't use TurboTax but you answered all of the questions I have about this subject in relation to filing my taxes. Thank you!

[@anandbhandari6753]

Really helpful. I tried this before watching this video and Turbotax would somehow treat this as a taxable distribution. Thanks for making this video.

[@eataxresolutions]

Glad it helped!

[@nealgagen]

I highly recommend this video...The clearest and most helpful advice I've found. Thank you Anthony!

[@eataxresolutions]

Awesome, thank you!

[@GoatTwinkie]

Its my first time filing taxes and this was super helpful. Thanks a lot

[@gMcizzLeTribes]

Very much appreciated! The process seems a bit different in 2022 TT and I was unable to follow a 2021 tutorial, but this was super clear - thank you!

[@eataxresolutions]

Of Course! Some things do change from year to year so I am glad we were able to help you out!

[@Phlegethon]

Went to save this and realized I did last year already thanks

[@NghiaPham-xi5so]

That was a great tutorial and helped me figure it out. Thanks!

[@adamsinger5567]

Super helpful - thanks for walking through this!

[@eataxresolutions]

Glad it was helpful!

[@mbakken11]

Thank you so much - I question myself every year when I do this and the TT phone support is never any help for detailed items like these.

[@terencechan7338]

Thanks so much for this helpful video! Do you need to add BOTH your Roth IRA 1099-R and your Traditional IRA 1099-R or just the Traditional?

[@miraclelove991]

It's about time somebody came on here with something different (DIY). Instead of all that baby stuff that is a given.😍 Next, they will all be copying and learning something from you💙💙💛💛💙💙

[@mlew2011]

Excellent video - easy to follow step by step. Thanks!

[@JDW0033]

Brilliant, What a fantastic tutorial

[@furgo1]

Hello; Could this scenario as you explained be done by doing an initial deposit of 10K instead of $7000 for 2024 into the non deductible new IRA?

[@mzh3951]

Thank you so much! Could you help out how to choose these options if 1) I contributed at the end of year and converted it at the beginning of next year😢, and 2) contributed for previous year at the beginning of a year and converted right after. Now I know it’s not good practice…any help would be appreciated!!

[@circrna]

This is great video. How do we deal with excess contributions? For example, I have contributed $7500 (>50yo allowed limit in 2023) to traditional IRA in my Vanguard account, but before I was able transfer the money to Roth (backdoor), the value became $7500.90. As a result I have contributed 90 cents more and converted to Roth ($7500.90 in Roth Ira). How can I enter this in my Turbotax? I am guessing I have to pay taxes on that 90 cents.

[@eataxresolutions]

Hey! I went over your comment in my most recent livestream! Hope this helps! If you have any other questions I go live every Monday at 4P.M. PST. Be sure to stop by and ask your TurboTax Question. The link is time stamped to when i answered your question. kzbin.infoozFJYOmHHdI?si=W2k6UH7VGvsS8afc&t=2699

[@11pinkie11]

how do you submit the form 8606 to the IRS? do you mail it in? or did the numbers that you entered automatically file the 8606 ???

[@RayLabs]

Great information. I was wondering if you had done or could do a video using Turbo Tax to do a Roth Conversion for planning purposes. My scenario is that I am now retired and want to do some what if analysis using Turbo Tax to see what the tax implication might look like if I converted say $100k from my 401k to a Roth IRA (that I have setup). I know it would not be perfect, but would at least give those of us considering this an idea on what to expect.

[@SethCarmichael-no4jh]

Contributed to my 2023 roth via backdoor in January of this year and will be contributing again for 2024. Realize now this is the “late” backdoor roth and it is easier to contribute in the same calendar year. Will I follow these same steps next year and just enter the single 1099-R for both years? This video was very helpful. Thank you!

[@eataxresolutions]

Hey! I will be going over your comment in my upcoming livestream! Hope this helps! If you have any other questions I go live every Monday at 4P.M. PST. kzbin.infoSHkqV4_UN90

[@tannersiebe8637]

So I'm curious how this would change for the following instance, I made my non-deductible contribution of 6,500 for 2023 and 7,000 for 2024 in Mar of 24, and converted it in Mar of 24. Would I fill out of the non-deductible contribution for 2023, but won't have a 1099-R for 2023? Also would my end balalnce on Dec 31, 2023 still be 0?

[@chithrapriya1145]

Same question ! Would appreciate an answer !

[@eataxresolutions]

You wont have a 1099-R for 2023 as the conversion happened in 2024. You will need to report the $6,500 contribution and make it non-deductible for 2023. Then report the $7,000 contribution and make it non-deductible on the 2024 tax return next year.

[@bs9757]

Question: At 4:58... Why does Box 2a show $6,000 as Taxable Amount? This threw me off, because my 1099-R is blank in Box 2a, and I understood this shouldn't be marked as taxable. Could you let us know? Thanks!

[@benjaminshiao1581]

perfect video man

[@eataxresolutions]

Appreciate it!

[@jaxfr8dog]

Thanks!

[@ryanfitzsimons7388]

Still don't understand why you clicked "No" for any nondeductible IRA contributions at 2:15 Isn't a backdoor roth a nondeductible contribution?

[@timofritzy]

Is there a way to do this with money that was withdrawn and transferred before April 15, but I do not have a 1099 for it because the withdrawal took place in 2024?

[@ankurarora7360]

Can you also run a scenario where you intended to do a conversion, but due to how different brokerages work and make the funds available to be converted, you end up acruing a small interest in the tradtional IRA account. Nothing major, but a few dollars.

[@Kamdorian]

I have this same issue. My contribution in traditional IRA accrued some interest from being in the money market fund. Have you figured out what to do?

[@CaKiteboarding]

hello, great video, thank you, how about if I want to do for both me and my wife? just double the numbers is all? or do you it separate, 2 times? thanks

[@eataxresolutions]

You should associate the contributions to each. For example $6k to you and $6k to your wife. This will generate 2 separate form 8606s. You do not just double the amounts. Hope this makes sense.

[@syrshaharv]

Do I have to take any further steps on TurboTax if I contributed to my Roth IRA first (mistake bc I was over the income limit) and then had to recharacterize to Traditional IRA, before completing the Backdoor Roth?

[@DirtyBob154]

Did you figure this out?

[@UtsavMathur-w9v]

Thanks, this was super helpful.

[@eataxresolutions]

Glad it was helpful!

[@hcarducci]

I don't understand the tracking question. I've been doing Roth conversions for years, so I should check yes? I have an 8606 on every tax return for the last 5 years,

[@jamiebonafe3189]

thank you for this video! my husband and I are married filing jointly. We both have the retirement box checked in box 13 on our W-2's. Our AGI is between $228,000 and $229,000. We both contributed $6500 each to ROTH IRA's in 2023 and $7000 each to ROTH IRA's for 2024. Question 1: is there a way to change the 2023 contributions to traditional and then change back to a backdoor ROTH? Question 2: is it too late to do something about the 2024 ROTH contributions? We have never encountered this situation before where our AGI was too high to not be able to contribute the maximum to ROTH IRA's.

[@eataxresolutions]

Hey! I went over your comment in my most recent livestream! Hope this helps! If you have any other questions I go live every Monday at 4P.M. PST. Be sure to stop by and ask your TurboTax Question. The link is time stamped to when I answered your question. kzbin.infoeLhffV-zc9s?si=HfeqJRwMao-7dCC2&t=2267

[@jamiebonafe3189]

@@eataxresolutions thank you for your reply! It sounds like we need to re-characterize the FULL amounts of each of our 2023 ROTH IRA's and the FULL amounts of the 2024 ROTH IRA's. not even sure if partial amounts are allowed. How long do I need to wait to then re-characterize each of these back into ROTH IRA's? Does this increase my risk of being audited since I will be taking the 2023 ROTH IRA's, re-characterizing to trad IRA and then back to ROTH IRA, all before 4/15/24? the 2024 ROTH IRA's will be a similar situation, but with potentially more time in between the conversion from traditional IRA back to ROTH?

[@11pinkie11]

so are we still filling out the form 8606????

[@pigletno3]

Hello, the amount of tax due shown on Turbotax increased after I completed the steps in the video. Is that right? I thought the video says we don't owe extra taxes?

[@eataxresolutions]

Hey! I will be going over your comment in my upcoming livestream! Hope this helps! If you have any other questions I go live every Monday at 4P.M. PST. kzbin.infoSHkqV4_UN90

[@11pinkie11]

PLEASE HELP!!!! I made conversions from TradIRA to ROTH IRA for 2023 in 2023 and 2024 on Jan 29, 2024 so it is considered a late backdoor conversion. so would i include the 2024 conversion for this year's tax??? $500 for 2023 was converted to ROTH IRA, then $200 was converted in Jan 2024 for the 2023 year!! I am sooooo confused, please help!!!

[@tonyvaldez9728]

Thank you!

[@eataxresolutions]

You're welcome!

[@aaronmiwiify]

Isnt number 8 and 16 the same thing on the 8606?

[@amandamilne844]

Do you have any videos if the investor broker accidentally put part into a Roth and then had to move it to a traditional to do the back door?

[@eataxresolutions]

Hey! I went over your comment in my most recent livestream! Hope this helps! If you have any other questions I go live every Monday at 4P.M. PST. Be sure to stop by and ask your TurboTax Question. The link is time stamped to when I answered your question. kzbin.infoeLhffV-zc9s?si=t4WYvKreBVYwqLRk&t=3171

[@staroftheshow0]

What happens if you earn interest into your IRA.. am I supposed to pay tax on that interest that is left over in the IRA instead of marking it zero? I only ask because you have to wait a day to convert it and waiting that one day adds interest that is left over in the IRA.

[@eataxresolutions]

Yes you are supposed to pay tax on the interest earned during that time from the contribution to the conversion. Usually it is very minimal though.

[@shubhamjain7464]

@@eataxresolutions I thought you only get taxed when you take that money out of IRA account? If not then, should you also just convert that earned income to make sure you don't get taxed on it every year?

[@xMrCANNONx]

I did everything he told me but the distribution somehow shows that it is taxable. Any thoughts?

[@eataxresolutions]

Hey! I went over your comment in my most recent livestream! Hope this helps! If you have any other questions I go live every Monday at 4P.M. PST. Be sure to stop by and ask your TurboTax Question. The link is time stamped to when I answered your question. kzbin.infoeLhffV-zc9s?si=kRkZFjA8UKsyrbTQ&t=2907

[@babban2312]

Last year 2023, I deposited $6.5k in my traditional IRA and converted backdoor into RothIRA , however after conversion I came to know the traditional IRA earned 1c in the account. Right now my Traditional IRA has 1c balance. My question is: For the current year should I transfer $6999.99 to Traditional IRA and move the total balance ($6999.99 + .01 = $7k ) to RothIRA or I should keep that 1 cent untouched in Traditional IRA and fund additional $7k in Traditional IRA and then covert $7k it to Roth. Will I have any penalty situation here either way?

[@eataxresolutions]

You can just convert the full amount and pay the tax on the one cent, which will be nothing. There will be no penalty

[@babban2312]

@@eataxresolutions Thank you appreciate your timely reply. All the best .

[@aparrado]

This is helpful. I'm doing my 2023 return and I made the contribution in January 2024 for 2023. I contributed and converted in January so do I only do the IRA contribution part for this 2023 return and then in 2024 put in the 1099-R right for this conversion and the 2024 one? Will they tax me in 2023 since I didn't convert it over in 2023? I should have done this earlier.

[@eataxresolutions]

Great question. You should include the contribution on your 2023 return and "Choose Not to Deduct IRA Contributions" and make it "nondeductible". This will produce the Form 8606 and next year when you get the 1099-R, it will reconcile with the Form 8606. This happens alot

[@dthongly6459]

@@eataxresolutionsI’m in a similar situation (made contribution in Jan 2024 for 2023) and I followed the steps you outlined in the video. When I add my 1099-r my federal due increases. Is this expected or do I need to follow the steps in your above reply?

[@eataxresolutions]

@@dthongly6459 Seems like there's a timing issue here. If you received a 1099-R that means you took money out of a traditional IRA in 2023. The contribution in 2024 (even though you elected it to be treated as for 2023) happened after you took money out of your account. Therefore in order for the money that was taken out of the traditional IRA in 2023 (1099-R) to be non taxable, you would need to have contributed to the Traditional IRA in 2023 (not 2024 and elect for 2023) or earlier and make the election for it to be non taxable. If you want me to take a look at your situation and address this please give us a call. 800-245-0596

[@juliedehagen2946]

I am doing a "Current year conversion from a traditional to a Roth IRA". How do I determine if all or part of the pension income is excludable on my state return?

[@juliedehagen2946]

box 16 on 1099-R is blank

[@eataxresolutions]

Generally the States follow the federal rules so whatever was excluded from income on the federal return should be excluded on your state return. What state are you in?

[@itsik_]

Thanks so much!

[@eataxresolutions]

You're welcome!

[@fadyalspahy8670]

I started ROTH in 2023 for the first time through my job but when i go to the website it says i will not get a tax form . Do i still need to choose i have contributed in turbo tax?” Thanks

[@eataxresolutions]

Hey! I went over your comment in my most recent livestream! Hope this helps! If you have any other questions I go live every Monday at 4P.M. PST. Be sure to stop by and ask your TurboTax Question. The link is time stamped to when i answered your question. kzbin.infoozFJYOmHHdI?si=kfJWa6FOBGiPLRNF&t=2879

[@user-fp4dr1ne7z]

I was taxed because of my 1099r, and most likely paid more in taxes, will the IRS catch that for me and give me a refund?

[@eataxresolutions]

I think you mean you withheld taxes from your retirement distribution. This should be accounted for on your tax return. Be sure to include the amounts on box 4 and 14 to make sure you account for all the tax payments you made when getting the money from the retirement account

[@dannylang487]

wait why are you doing a print vs digital submission I'm so confused

[@eataxresolutions]

for illustration purposes only.

[@daltonscott6893]

What if its late payment from jan to apr the following year?

[@eataxresolutions]

Did you contribute to the Traditional IRA the following year? or convert it to the Roth IRA in the following year? Or both?

[@daltonscott6893]

@@eataxresolutions I did both the following year. So I contributed trad ira and then converted to roth ira jan2024 for 2023 tax year.

[@11pinkie11]

@@daltonscott6893 i did the same as you -- what do we do??? do we include the amount contributed for 2023 into the total contribution converted??

[@Anniegougou]

Thanks!

[@eataxresolutions]

Welcome!