How do you enter a backdoor IRA in ProSeries without a Form 1099-R?

[Greg from Long Island]

I have a client who opened a traditional IRA in January 2022 and converted it to a Roth IRA same day. There was no 1099-R distributed and I can't enter this in ProSeries without it - the program won't allow me to answer pertinent Qs in Form 8606. Can anyone please explain how I can resolve this?

[IRonMaN]

Wouldn't that be on next year's return?

[maylane]

sounds like a debit and a credit therefore you do nothing

[rcooley25]

It sounds to me like even though it started out as a traditional IRA by converting it to a ROTH Ira  it has most likely been handled by the powers that be as an Original Roth and since it does not effect your taxes untill it is withdrawn I dont think you have a problem.

[IRonMaN]

You do something, but that something doesn't happen until the year that the something actually happened in.

[IRonMaN]

Timeout - everybody please go and do a little research on back door Roths.

[Just-Lisa-Now-]

[dd4vols]

so..... he possibly has a 2021 non-deductible IRA (depending on how they treated it), which creates a basis, but no way he '"back-doored"  it in calendar year 2021. And even if they marked it originally a 2021 contribution, i would lean on the advisor to somehow make the contribution a 2022 contribution, then convert it. I think 2021 is a lost cause here.

[Greg from Long Island]

Thanks for your quick responses. Brokerage house tells me it can be reported for 2021 since it was done in January. I believe you can still report this for 2021 tax year since it’s done before filing deadline, right?

[rbynaker]

The broker is wrong.  That's why you can't figure out how to enter it into the software.  While the contribution can be designated for TY 2021 or TY 2022, the conversion happens when it happens and is reported in that tax year.  Sounds like in your case that's 2022.

If the traditional IRA contribution was designated as 2021 you will need to fill out an 8606 to report the non-deductible contribution and start tracking basis.  Next year you'll get a 1099-R showing the conversion.

[Dusty2]

@IRonMaN  can I come out of my timeout corner yet?  It is kind of crowded in here.

Dusty

[IRonMaN]

@Dusty2  - you can come out now.  I have a nice big bowl of chocolate ice cream for everybody🍨

[Dusty2]

Chocolate ice cream?  I think I have been bad and have to stay in this corner a little longer....

[qbteachmt · Accepted solution]

"Brokerage house tells me it can be reported for 2021 since it was done in January."

Nope. You need to stop listening to Brokers, by the way. They are starting to seem like solar salesman: "Really, you will get a rebate, and a tax credit, and you will make so much money when you sell back that electricity, and all of your own electricity will be Free for the rest of your life; just sign here."

You want evidence it was tagged as a 2021 contribution. That's the only reason it is part of a 2021 tax return.

And any further event is a separate event that happened when it happened and gets reported as such. That conversion happened in 2022.

[Greg from Long Island]

Thank you - appreciate you and others for taking time out to respond to my Q.