Form 8606 - Back-Door Roth Conversion

Form 8606 - Back-Door Roth Conversion

Among the purposes of Form 8606 is reporting a "backdoor Roth IRA" conversion, the non-IRS term for converting funds from a traditional IRA or 401(k) plan into a Roth IRA. The money rolled into the IRA is taxable to the extent it hasn't already been taxed, including the earnings on the money until it is converted to a Roth IRA. The taxpayer should have received a Form 1099-R for the distribution that was converted to a Roth IRA.

To report a backdoor Roth IRA conversion, from the Federal Section of the tax return (Form 1040) select:

  • Deductions
  • Adjustments
  • Nondeductible IRAs
  • Net Amount converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 20xx - Enter the amount converted.

The taxable amount will carry to Form 1040 line 4b as a Taxable IRA distribution.

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