Form 8606 - Backdoor Roth IRA Conversion
Desktop · Written guide Content date 1 min read
Among the purposes of Form 8606 is reporting a "backdoor Roth IRA" conversion, the non-IRS term for converting funds from a traditional IRA or 401(k) plan into a Roth IRA. The money rolled into the IRA is taxable to the extent it hasn't already been taxed, including the earnings on the money until it is converted to a Roth IRA. The taxpayer should have received a Form 1099-R for the distribution that was converted to a Roth IRA.
To report a backdoor Roth IRA conversion, from the Main Menu of the tax return (Form 1040) select:
- Adjustments
- Nondeductible IRAs - If filing MFJ, select Taxpayer or Spouse.
- Traditional IRAs
- Net Amount of Traditional IRAs Converted to Roth IRAs - Enter the amount converted.
Note that the taxable amount of the distribution is carried to Form 1040 from Form 1099-R box 2a. Be sure to enter the correct taxable amount in that box.
Note: This is a guide on entering a backdoor Roth IRA into the Tax Processors Plus Desktop program. It is not intended as tax advice.
Additional Information:
IIRS: Topic No. 451 Individual Retirement Arrangements (IRAs)
IRS: Topic 413, Rollovers from Retirement Plans
IRS: Instructions for Form 8606, Non-Deductible IRAs
IRS: Publication 590-A, Individual Retirement Arrangements (IRAs)
(use the same year publication as the return you are working on)