1099R shows IRA contribution for 2024 and 2023
SITUATION:
I contributed a traditional to Roth IRA conversion for both tax years 2023 and 2024.
However, I actually made both contributions in April 2024 (before the cutoff, so that 6.5k counted for 2023, and 7k counted for 2024).
On the 1099-R I received from Schwab for tax year 2024, box 1 reads 13.5k (6.5k + 7k).
QUESTION:
- Where can I elaborate this on FreeTax USA? (Under the credits section?)
- To double check: I still characterize this as a "traditional contribution" (not Roth) is that right? (Under deductions/credits > "Enter any traditional IRA contributions you made during 2024")
Many thanks!!
Comments
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I don't understand what you mean by "I contributed a traditional to Roth IRA conversion." Do you mean you converted a traditional IRA into a Roth IRA? Were there contributions made to the traditional IRA before you converted them to a Roth?
A 1099-R reports distributions from an IRA, not contributions to one. The 1099-R is probably reporting the distribution from the traditional IRA (on which you pay tax). That's the first step of the transaction.
Contributions to an IRA will show on Form 5498, and don't go on your tax return. If you made a deductible contribution to a traditional IRA, you can enter it without a form.
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Yup, converted trad to Roth. Contributed to trad, then converted to Roth. This is true for the below:
I basically want to make sure IRS knows I contributed only the limit (7k) for tax year 2024, not 13.5k (6.5k of which was for tax year 2023). Right now, it's confusing, b/c they are both included on the same 1099-R (which, as you mentioned, shows distribution from Traditional).
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Hi Adopt_a_cat,
What you need to do is enter 1099-R exactly as it is and the IRA Basis for the 2023 contribution on the IRA Basis, which is the page after the Retirement 1099-R page. Then you need to enter the 2024 IRA Contribution on the IRA Contribution page under the Deductions/Credit menu.
See this article about a Backdoor Roth for help.
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