1/18/2024 0 Comments Backdoor roth ira turbotax 2020![]() ![]() To determine the taxable amount for Massachusetts, enter the following information. I should tell TurboTax that the $6000 for me in 2021 and ~$40,000 for my wife in 2021 were previously taxed.Īlmeida's federally taxable IRA/Keogh plan distributions received during 2021 are $6,000. I should have told TurboTax that the $6000 of mine in 20 was previously taxed. Even though her conversion in 2021 was almost $40,000, should I still enter that full amount as "Other Contributions Previously Taxed by Massachusetts"? ![]() We were finally able to rollover her deductible contributions to a 401(k) in 2021 and then do a Roth conversion on the non-deductible part that was a leftover. She had a mix of deductible and non-deductible contributions over several years. ![]() My wife's case is a little more complicated. For my 2019, 2020, and 2021 returns, should I therefore enter $6000 as "Other Contributions Previously Taxed by Massachusetts"? In my case, this is for the standard backdoor Roth, where you contribute up to the limit and then immediately convert to Roth. Put simply: when TurboTax asks about "Other Contributions Previously Taxed by Massachusetts" in the context of a distribution from a traditional IRA for the purposes of a Roth conversion, do I simply enter the amount of the original contribution? I'm not quite following the entirety of your post, but long story short is that a Backdoor Roth IRA contribution and conversion have exactly the same tax treatment in MA as they do federally. And, I suppose a backdoor Roth would be the same. The distribution of the first $6000 is not taxable (because it was previously subject to Massachusetts taxes) but the next $6000 is taxable (because it wasn't previously subject to Massachusetts taxes), right? The same would also apply to regular old Roth IRA contributions in Massachusetts. are recovered" mean? Is it just saying that contributions aren't taxed again but that growth is? Say I contribute $6000 to a regular old Traditional IRA and it grows to $12000. What does "until the full amount of your contributions. Since Massachusetts does not allow a deduction for amounts originally contributed to an IRA or Keogh, the distributions are not taxable until the full amount of your contributions which were previously subject to Massachusetts taxes are recovered.Īm I answering TurboTax's questions right? I think so, based on some previous threads: Here's what it looks like this year for me: I don't remember how I answered this question in 2019 or 2020 or whether it was even asked at all. If I say that all of it was taxed, the amount we converted disappears from the income section on my 2021 state return. In the state return section, TurboTax asks about contributions that were previously taxed in Massachusetts. TurboTax was saying we owed a couple thousand in state taxes for her conversion, which was big enough for me to notice. We first opened a self-employed 401(k) for her, rolled everything except the basis over to the 401(k), and then converted the basis. It appears on line 2 of Schedule X: "Taxable IRA/Keogh and Roth IRA conversion distributions." That ends up appearing on line 9 of Form 1: "Other income from Schedule X, line 5." I didn't notice this until now, because.įor 2021, we did a backdoor Roth for my wife for the first time. In 20, TurboTax counted the $6000 as part of my taxable income. I've used TurboTax online for the last few years too. I've done the backdoor Roth for the last few years.
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