Author Topic: Help with TurboTax & backdoor ROTH (from financial bluff article/my first time)  (Read 115 times)

bigote2032

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Hello all dear Mustachians! Disclaimer: Before deciding to start this thread, I have been following financial buff TurboTax step-by-step document, but after 3 days of Internet research I cannot find my way out and I hope somebody out there will help me.

I have been following the finance buff step by step instructions on how to fill the backdoor ROTH in TurboTax, however, that post is old and TurboTax is now different and I cannot seem to find my way to do it since TurboTax is missing many sections that are described in the article.

Facts about my case:

* I did a typical backdoor ROTH last year for the maximum of $5,500.  Nothing fancy here.
* I totally forgot to fill the backdoor ROTH in TurboTax last month (since it is my first time, totally overlooked it)
* Now I need to submit an amendment for the missing backdoor ROTH
* I don't have Form 5498.  It is needed to fill out information for TurboTax question "Tell Us the Value of Your Traditional IRA".
In Vanguard's website, it says that this form is sent to us on Mid-May since contributions can be made until
April 15th.  This does not make any sense.  I did my backdoor ROTH in September 2018 and I need the form now
to file my taxes,  the deadline for taxes is April 15th!
* The new TurboTax online version is not showing sections that are in the financial buff article and are needed to complete the process

Now I will list the steps I followed as detailed as I can to give you a good picture of my situation:

1. Logged in to TurboTax online and selected to file amendment
2. Once I chose to amend, the balance (refund or taxes owed amount) was reset to 0
3. Answered all the 1099-R questions just like instructed in the financial buff
4. The site said "Good News: You don't owe extra money" (happy face)
5. I answered that I moved the money to another retirement account
6. I answered that I converted all of this money to ROTH IRA account
7. Now my balance said I owe $1,326 (sad face)
8. Asked about disaster and hurricane relief and chose no in all of them
9. In "Any Nondeductible Contributions to Your IRA", financial buff states I should choose "NO" if I have never don't this before. This is my very first time doing a backdoor ROTH.  I guess next year it will be "YES" but I have selected "NO" in this case
10. At this point, I am supposed to see the "Let's Find Your IRA Basis" section but it does not show up at all after the last question
In "Tell Us the Value of Your Traditional IRA", it says I need Form 5498 to answer.  I don't have it.  Anyway, since I don't have a clue what to put here, I put 0 in all the boxes.  My Traditional IRA balance is 0 since moved all to ROTH IRA.
11. Then I click "Next" to continue and seems that it is all done since it takes me back to my amended federal return with links to the main items for me to review such as:
general information, health insurance, Wages & Income, Deductions and Credits, etc.
12. The section for "IRA, 401(k), Pension Plan Withdrawals (1099-R)" is there, I can go back there to review all the answers I provided but cannot find any of the sections that follow in the financial buff article and that are needed to complete the process.

I will REALLY appreciate if somebody can shed some light on this issue, have not been able to sleep the last two nights.

If there any extra info you need that will help you to help me, please do let me know.

Thank you so much!!


MDM

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* I totally forgot to fill the backdoor ROTH in TurboTax last month (since it is my first time, totally overlooked it)
Did you
a) not enter some 1099 information in form 1040, or
b) not include form 8606, or
c) both a and b. or
d) something else?

bigote2032

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Hi MDM!

I missed anything that has to do to file backdoor Roth (both traditional IRA and ROTH IRA transactions).

As you might know, Turbo Tax takes care of whatever forms are needed based on the answers of the user. After checking the full return document, I did not enter any info about 1099 at all and my return does not have form 8606.

The Financial Buff article below provides instructions on how to file the backdoor ROTH, I am try to amend it but as my first post describes, the new version is missing many questions to complete it.

https://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html