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
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".
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