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Backdoor Roth coded wrong

chapguy19
Level 5

Client says that his 1099R is a backdoor Roth:

Gross Distribution $7000

Taxable $7000

2b Taxable Amount not Determined X

Distribution Code 2

IRA/SEP/Simple X

Shouldn't it have a different Distribution Code than 2?  Code 2 means Early distribution, exception applies.

I need help making this a Backdoor Roth.

Thanks in advance, Christopher

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1 Comment 1
TaxGuyBill
Level 15

It is coded correctly.

I don't use ProConnect so I can't tell you the specific how-to, but:

You need to indicate it was converted to a Roth.

The client said it was a Backdoor Roth, so that indicates he also made a contribution to a Traditional IRA.  Be sure to enter that non-deductible Traditional IRA so the software knows there is "Basis".