In years prior to 2018, a taxpayer could make a contribution to an IRA, the next day take a distribution of that contribution, then roll it into a Roth IRA.  This has been called a "Back Door Roth" as it could only be done through Proseries when you checked a box at the bottom of the 1099-R that allowed the full distribution to be re-characterized. However, that step (C-1 through C-3) is now missing from the 2018 software.  Take a look. It appears that this ability to contribute to a Roth through the "Back-door" method previously allowed has disappeared with the new tax act. The 1099-R in 2018 shows the distribution as a total distribution with the taxable status as undetermined. I have tried every way to get the distribution to show up as non-taxable but I can't.  I have tried every way suggested by those on this community

I think I found the answer - There are no more re-characterizations of IRA Distributions in 2018 to a Roth.  The new Tax Act killed the "Back-door" Roth for any distribution from a IRA in 2018 and beyond that is converted into a Roth.  You must now treat any distribution that is converted as taxable income.

Facts: 1099R for 2018 has 5500 in Box 1, 5500 in 2A, Distribution code is 2, scrolling down the page, 5500 appears in box B4, then check the box in B5 to show full amount in B4 converted to Roth, but this still shows up as fully taxable on 1040.  In 2017, there were boxes in C: Recharacterization, to indicate that the whole amount was recharacterized, however, there is no recharacterization section under a C category in 2018, the form goes from B to D