Backdoor ROTH and getting penalty for contributing to a ROTH because over income limit.

Forum|Forum|1 year ago
April 13, 2024
2 replies
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My income is too high for a ROTH. In 2023 I contributed $6500 to a traditional IRA and immediately transferred it to a ROTH. I followed all the instructions on TurboTax for a ROTH conversion.

Now I’m being told that I made too much for a ROTH and will have a $390 penalty for every year I don’t take out the $6500.

DanaB27

Please make sure that you don't enter the conversion as a Roth IRA contribution in the IRA contribution sections. A conversion is entered in the retirement section.

Please review the steps on how to enter the nondeductible tradition IRA contribution and conversion here: How do I enter a backdoor Roth IRA conversion?

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Opus 17

A Conversion is not a Contribution. Only report the conversion via the 1099-R.

sesayse92

So there is no need to enter anything in deductions & credits section as long as I have an 1099-R?

AnnetteB6

Correct. You do not enter anything pertaining to making a Roth IRA contribution.

However, if the Traditional IRA non-deductible contribution was made during 2024, you do need to be sure to enter it in the deductions and credits section for IRA contributions.

@sesayse92

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