BACKDOOR ROTH IRA TURBOTAX 2020 SOFTWARE

TurboTax help will guide you to properly enter it into TurboTax, so you can easily keep track of your contributions, deductions, and how much tax you should expect to pay at the end of the financial year.I file married jointly and we are both under age 59. If you are earning enough to be able to make a standard contribution to a Roth IRA, but you still want to take advantage of the flexibility and boost in post-retirement funding that one will provide, then a backdoor Roth is the way to go. There should not be anything under the section titled Schedule 1, Line 32 IRA deduction. However, if you did have earnings between the contribution and the conversion, then they will still be taxable and will show up here. Now, as long as you did not have any earnings between when you contributed to your Traditional IRA and when you did your backdoor conversion to a Roth IRA, your Taxable amount should be shown zero.

At last, in the section titled 1040 Postcard, Line 4, you should see your Roth IRA listed under IRA distributions.

Now, click on Preview my 1040 on the left-hand side of the window.

Then, on the Tool Center screen, choose View Tax Summary.

First, click on Tax Tools present on the left-hand side of the screen.

In order to check how you will be taxed on your Roth IRA, you can follow the steps given below: –

BACKDOOR ROTH IRA TURBOTAX 2020 SOFTWARE

Next, finish answering the remaining questions accurately until you get to the Your 1099-R Entries window, which means that you have finished reporting your backdoor Roth conversion.Īfter you have followed these steps, you should have successfully entered the information which the software needs to calculate your tax return properly.Thereafter, select I converted all of this money to a Roth IRA account.Next, under What Did You Do With The Money From ?, you need to choose I moved the money to another retirement account (or returned it to the same retirement account).

Select No option under Did You Inherit the IRA from ?.After that, you can either choose to manually input the details of your 1099-R form by following the on-screen instructions, or you can import it directly if you have a digital version.Now, if you end up on the Your 1099-R Entries screen instead, then click on Add Another 1099-R option. Next in Your 1099-R window, just click on Yes and then continue.Search for 1099-R, and then click on Jump to.Then, you need to tell TurboTax about the backdoor Roth conversion that you have made. Now, you need to answer the other provided questions as they apply to your current tax situation.Next, select No under Did You Change Your Mind? option.Now, fill in the amount you have contributed this year in the Tell Us How Much You Contributed window.Next, Under Is This a Repayment of a Retirement Distribution?, choose No.After that, under Did you Contribute To a Traditional IRA?, select Yes.Then, click on Jump to and on the Traditional IRA and Roth IRA window, click on Traditional IRA.Next, in the TurboTax Online, click on Search, and enter IRA contributions.Although this tutorial is written for TurboTax Online, the procedure is also similar for the desktop version and should not cause you any problem. Steps to Report Backdoor Roth in Your TurboTaxīefore proceeding with the steps, first, you need to enter the Non-Deductible Contribution made to your Traditional IRA.

Backdoor roth ira turbotax 2020