Dealing with IRA backdoor when contributed between Jan 1 and April 18

[gerygutnik]

Hi TurboTax experts. Have a new situation that I haven't dealt with before. 

My girlfriend contributed the $6,000 to Traditional IRA which she then backdoor converted into Roth IRA. But, she did the contribution for year 2022, during the month of January 2023. So, she did not get 1099-R. 

Do I need to deal with it part of 2022 taxes, or next year when I am doing her 2023 taxes? If this year, can you please guide me how to do it properly since I only know how to do it when you start from 1099-R and the contribution was done in the same year. 

Thank you for your guidance!

[MinhT1]

You will do this in 2 steps:

1. You will enter a nondeductible Traditional IRA in 2022.

Enter the IRA contribution and choose to make it nondeductible. TurboTax will generate form 8606 and include it in the tax return.

2. You will enter the conversion to a Roth IRA in 2023 when you receive the form 2023 form 1099-R.

Please read this TurboTax Help article for more information.

[gerygutnik]

Perfect, thank you @MinhT1  ! 

[fanfare]

If she wants to build up her Roth quickly,

she can do another non-deductible contribution for 2023 (assuming she has already enough earned income in 2023. and convert it now.

the 2023 allowed max is greater than the 2022 allowed max.

@gerygutnik