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Retirement

Convert a traditional IRA to a Roth IRA

To enter data for a traditional IRA converted to a Roth IRA (also known as a backdoor Roth), complete the following steps.
  1. Open the
    1099R
     screen in the
    Retirement
     folder and enter the total amount converted in box 1 and box 2a.
  2. Enter 1 of the following items for a Roth conversion:
    • Enter
      2
       in box 7 if the participant is under age 59 1/2, or
    • Enter
      7
       in box 7 if the participant is at least 59 1/2.
      note
      Don’t use the code
      J
      .
  3. Enter
    X
     in the
    IRA/SEP/SIMPLE
     field.
  4. Open the unit of the
    1099R-3
     screen, and enter the amount that was converted in the
    Conversion to Roth
     field.
  5. Open the
    IRA
     screen in the
    Retirement
     folder and enter the code in the
    Conversion from traditional IRAs to Roth IRAs
    field. Enter
    2
     if the taxpayer converted all of their traditional IRAs to Roth IRAs and received no other distributions (withdrawals) from traditional IRAs during
    2025
    . For all other conversion scenarios, enter
    1
    . The code in this field determines which lines of Form 8606 are calculated based upon Form 8606 instructions.
  6. Enter any current year contributions, basis information, and IRA values as necessary.
note
  • If you don't agree with the taxable amount calculating on Form 1040, line 4b, refer to Form 8606, Page 2, line 18. The amount from line 18 will transfer to line 4b of Form 1040. To change Form 8606, line 18, you'll need to modify the amount calculated on line 17. To do this, use the
    Roth IRA basis, Form 8606 line 17 (Force)
     field on the
    IRA
     screen, located under the
    Retirement
     folder. If the taxpayer has a traditional IRA basis to be entered, refer to the next bullet point. The calculation of your Roth IRA basis can be viewed on the Roth IRA Worksheets, located in
    Forms View
     in the
    IRA
     folder.
  • The amount entered in the
    Traditional IRA basis
     field on the
    IRA
     screen, will calculate Form 8606, page 2, line 17. This will make the distribution taxable to the extent of the distribution minus the traditional IRA basis.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1040 Individual
  • Subject: Retirement

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