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.
- Open the1099Rscreen in theRetirementfolder and enter the total amount converted in box 1 and box 2a.
- Enter 1 of the following items for a Roth conversion:
- Enter2in box 7 if the participant is under age 59 1/2, or
- Enter7in box 7 if the participant is at least 59 1/2.noteDon’t use the codeJ.
- EnterXin theIRA/SEP/SIMPLEfield.
- Open the unit of the1099R-3screen, and enter the amount that was converted in theConversion to Rothfield.
- Open theIRAscreen in theRetirementfolder and enter the code in theConversion from traditional IRAs to Roth IRAsfield. Enter2if the taxpayer converted all of their traditional IRAs to Roth IRAs and received no other distributions (withdrawals) from traditional IRAs during2025. For all other conversion scenarios, enter1. The code in this field determines which lines of Form 8606 are calculated based upon Form 8606 instructions.
- 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 theRoth IRA basis, Form 8606 line 17 (Force)field on theIRAscreen, located under theRetirementfolder. 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 inForms Viewin theIRAfolder.
- The amount entered in theTraditional IRA basisfield on theIRAscreen, 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.
