DIY Products

DIY Products

Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.

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Pioneer
Posts: 1
Registered: ‎02-15-2017

Backdoor Roth

What are the step by step instructions for reporting a traditional IRA to Roth conversion in 2017 H&R block online module? Or is there a place/link where I can find those?

Many thanks in advance.

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Backdoor Roth

[ Edited ]

Hi backdoor79,

 

Welcome to the H&R Block community.

 

Entering a rollover (IRA to Roth IRA) is a little bit different than entering a distribution.  This may seem like a lot but it's actually pretty simple.  Please follow these steps carefully:

 

  1. Under the income tab, select retirement & social security income (it's about half-way down the page).
  2. From the drop down menu that appears, select 1099-R retirement plan income, withdrawals, and rollovers.
  3. Click "other" to enter your financial institution name if it is not on the list provided.
  4. Click "next".
  5. Enter your distribution code from Box 7 of your Form 1099-R (It should be code "2" for an indirect rollover or code "G" for a direct rollover.).  If this was a direct rollover then the income entry is all you need to do (stop after step 16).
  6. Click "next".
  7. Select "IRA or SEP".
  8. Click "next".
  9. Select the first option "I converted or reconverted my IRA".
  10. Click "next".
  11. Enter all information from your Form 1099-R as shown.
  12. Click "next".
  13. Answer the questions.  Make sure that you enter the entire distributed amount for the amount converted.
  14. Click "next".
  15. You're done with the income entry.
  16. Click through and look for the other parts of this when you get to the "adjustments & deductions" and "taxes" sections.
  17. If you had any non-deductible contributions (out-of-pocket contributions) then complete Form 8606 under the adjustments & deductions tab to correctly calculate the federal income tax on your distribution.
  18. When you get to the taxes section select "Form 5329" from the dropdown menu.  Go through the questions and indicate that you qualify for an exception to the 10% penalty due to this being a rollover.  Your refund will have gone down when you first entered the 1099-R, however when you complete Form 5329 you'll seen an increase in your refund due to the 10% penalty being removed from your tax return.

 

Let me know if you have any trouble getting through all of this.

 

Louis

Pioneer
Posts: 1
Registered: ‎03-02-2017

Re: Backdoor Roth

Hello, I my wife and I are making Backdoor Roth Contributions, but it continually says that we have made excess Roth IRA contributions (even though I don't list any Roth IRA contributions). Can someone please help?

Pioneer
Posts: 1
Registered: ‎03-15-2017

Re: Backdoor Roth

Hello,

I contributed post tax money to a IRA account and converted to Roth but having trouble entering the details in H&R online 

 

- Filed the below forms 

1) Income section ->1099 R as per the below instructions (Do you have a basis in your IRA? entered as Yes)

2) Adjustment section - Tradition OR IRA form (need help on what to fill here)

3 ) Adjustment section Filled 8606 (need help on what to fill here)

 

The software shows as I contributed to Excess Roth , not sure what this means 

 

Any hep is appreciated 

 

Thomas

 

Pioneer
Posts: 1
Registered: ‎03-15-2017

Re: Backdoor Roth

In my Form 1099-R I received from my financial advisor, box 2a (Taxable Income) is filled out but when I put that in the H&R Block Module, it says I should not have any taxable income.

 

Secondly, it is not letting me complete Form 8606 - I had put all of my money in a traditional IRA and it was a nondeductible contribution (as I am above the income limit to get a deduction) and then it was immediately completed to a Roth IRA. However, when I go to Form 8606, it says:

 
Since you don’t have an IRA conversion, you don’t need this topic.
 
Please HELP!
JK7
Pioneer
Posts: 1
Registered: ‎04-10-2017

Re: Backdoor Roth

Thanks for the instruction. 

In the data entry of 1099-R, for box 2a, I can't enter 5500 (same same gross amount in box1). The message I get is "There shouldn't be an entry for the taxable amount in box 2a. On converted or reconverted IRA distribution's the taxable amount will be calculated from your entries in the IRA interviews in the Adjustments and Deductions section.". Ergo, after completing the numbers, my taxes went up by ~$2000 even though backdoor roth should not. Appreciate any input.

Thanks.

ALC
Pioneer
Posts: 1
Registered: ‎04-11-2017

Re: Backdoor Roth

Did anyone ever answer this? It will not let me enter in an amount for box 2a either, although after going through the rest of the steps my tax ended up staying the same, so I believe the rest is ok, but I would feel better if I could enter in my form completely.

Pioneer
Posts: 1
Registered: ‎12-23-2017

Re: Backdoor Roth

I haven't actually done this yet but was looking into it for my 2017 filing and found this link which seems to walk through step by step. It says it is normal to see ~$2000 tax liability after step 1.

 

https://thefinancebuff.com/how-to-backdoor-roth-hr-block-software.html

Trusted Council Member
Posts: 6,191
Registered: ‎02-23-2016

Re: Backdoor Roth

Hi ssavinski,

 

 

 

Welcome to the H&R Block community.

 

You're correct.

 

Unless you funded the IRA account that you're rolling the funds over into the Roth account from with after-tax dollars you will see taxable income and a tax liability when you enter the 1099-R.  Make sure you fill out Form 8606, Part II, so that your tax liability is calculated correctly.  If you contributed after-tax dollars to a retirement account during the year then fill out Part I as well.  If an early withdraw penalty appears on your tax return because you completed the conversion through an indirect transfer then fill out Form 5329 to waive the penalty.  In the H&R Block software the option to complete both forms will normally appear as you go through the interview if you need them.

Pioneer
Posts: 2
Registered: ‎01-28-2018

Re: Backdoor Roth

When I try to enter in my 1099-R H&R Block says: There shouldn't be an entry for the taxable amount in box 2a.  On converted IRA distribution's the taxable amount will be calculated from your entries in the IRA interviews in the Adjustments and Deductions section.

 

Can't I just enter the box in 2a now and then do the IRA part in the adjustments and deductions later?  Also, even after I've entered in information in the IRA section it still won't let me enter this in.