How do you enter a "back-to-back" ROTH IRA transaction into ProSeries?

Forum|Forum|6 years ago
December 6, 2019
1 reply
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Client opens a non-deductible traditional IRA then next day he converts to a ROTH. How do you enter these so the 8606 is created to show it as a non-table event?

ProSeries Professional

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Best answer by Ernie

You will enter in the contribution on the IRA contribution worksheet as a contribution to a Regular IRA. They will then receive a1099-R with a code 2 for the amount rolled over. You enter that on the 1099-R worksheet.

You will then click the box on line B-5 that shows they rolled the full amount over to a Roth IRA.

Dusty Ernie

ErnieAnswer

Level 7

You will enter in the contribution on the IRA contribution worksheet as a contribution to a Regular IRA. They will then receive a1099-R with a code 2 for the amount rolled over. You enter that on the 1099-R worksheet.

You will then click the box on line B-5 that shows they rolled the full amount over to a Roth IRA.

Dusty Ernie

D

dtran

Level 2

I clicked on B5 in 2020 Proseries, back-door IRA recharacterized to Roth, does not work. meaning the tax liability still there. Please advise.

qbteachmt

Level 15

@dtran

it's not "recharacterized."

It's a "Back Door Rollover." Basically a type of conversion, from Basis (nondeductible Traditional IRA) to Roth (which is always nondeductible).

And your client has to have No Other Basis in any Traditional IRA or tax deferred account, for this to work. Otherwise, you have a regular conversion with a taxable percentage.

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