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How do I enter information for a backdoor roth ira contribution in Pro Connect for contributions made between 1/1/20 and 4/15/20 for TYE 12/31/19?

twg6541--
Level 1
 
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3 Comments 3
George4Tacks
Level 15

For 2019, you will simply enter the IRA contribution. Deductions > Adjustments to Income > IRA Contributions (1=maximum deduction) > Enter the amount the client intends to roll over next year. Also enter Contributions made (letter use only)

That opens the back door, but that door can't closed until 2020, when it is withdrawn from the IRA and rolled into a Roth. 

Careful- Are there any other IRA accounts? 


Here's wishing you many Happy Returns
twg6541--
Level 1

Thank you for the response. So even though these transactions happened almost simultaneously (IRA contribution and conversion to Roth), the conversion is considered to have occurred in the actual year of the conversion (2020). Correct?

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George4Tacks
Level 15

Yes. Contribute for 2019 in 2020 goes on 2019. Conversion for 2020 in 2020 goes on 2020.

 


Here's wishing you many Happy Returns