nolanm
Level 4
‎02-22-2021 02:19 PM

Hi all - I was on the community prev on this issue and got some helpful pointers. Now want to finalize the return.

Client contributed $6k twice to his regular IRA in 2020. Both were converted (back door) into his Roth. 

I have had the broker involved in the 2nd contribution (broker B) remove the 2nd $6k back into his IRA   ( as if it never happened - no earnings or interest) and move the ira contribution to 2021. 

The 1099 for this 2nd traditional ira distribution is now corrected to zero. 

So I have 2 x 1099 distribution forms from broker B for 2020, one for $6k and one for zero. 

Do I need to enter both into his 2020 taxes as the corrected 1099 is zero? Or neither as the IRS will receive the corrected zero 1099.  I know I can paper file, attach both the initial 1099 and the corrected, and explain in a covering letter.

I am just questioning the correct way to enter into Pro-series in the event that I decide to e-file.

Thanks NolanM 

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qbteachmt
Level 15
‎02-22-2021 05:01 PM

"So I have 2 x 1099 distribution forms from broker B for 2020, one for $6k"

The original topic is here: https://proconnect.intuit.com/community/tax-talk/discussion/excess-back-door-roth-contribution/00/12...

So, it turned out the May and Dec were both for 2020? And the Dec broker issued the Corrected 1099-R? And as I recall (instead of updating that topic where you have the background), you should have one of these (the $0) marked as Corrected.

"Do I need to enter both into his 2020 taxes as the corrected 1099 is zero?"

Nope. Nothing happened = $0. That corrected one is the failed conversion. You have one conversion to report, and perhaps some taxable earnings on the excess.

 

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nolanm
Level 4
‎02-23-2021 10:24 AM

Yup got it. Thanks again for the help

Best Nolan

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