Need help entering backdoor ROTH IRA conversion info on tax software - struggling with Form 8606

The 1099-R is just part of what you need. Form 8606 is crucial for documenting your backdoor Roth IRA properly. For Form 8606 Part I: - Line 1: Enter your traditional IRA contributions for 2024 that were NOT deductible (likely the full amount if you did a backdoor Roth) - Lines 2-3: Enter any previous nondeductible contributions and add to get your basis - Line 4: Enter the year-end value of ALL your traditional IRAs (should be zero if you converted everything) - Complete the rest of the calculations as prompted by your software For Form 8606 Parts II/III: - Line 16: Enter the amount you converted ($9,462.25 based on your 1099-R) - Line 17: Enter your basis from line 14 (should match your contribution if this is your first backdoor Roth) - Line 18: This calculates the taxable amount of your conversion (should be minimal if you converted shortly after contributing) Your 1099-R shows the gross distribution, but Form 8606 is where you document that you already paid tax on those contributions, preventing double taxation.

I went through this exact same situation last year and found taxr.ai (https://taxr.ai) incredibly helpful for figuring out my backdoor Roth conversion. I was totally confused about Form 8606 too, especially since my broker (also Fidelity) wasn't very helpful with guidance. I uploaded my 1099-R to the site and it walked me through exactly what to enter on each line of Form 8606. It even explained why the taxable amount on my 1099-R wasn't accurate for my situation since the form doesn't account for non-deductible contributions. The best part was that it showed me where I was making mistakes in my software entries - turns out I was entering things in the wrong sequence which would have messed up my basis tracking for future years.

Just wanted to update that I tried taxr.ai after posting my skeptical comment, and wow - it actually delivered. I uploaded my 1099-R and answered a few questions about my Traditional IRA contributions. The system immediately identified that I had a backdoor Roth situation and generated a complete walkthrough for my specific tax software. It showed me exactly which screens to navigate to and which values to enter for Form 8606. What really impressed me was how it explained the pro-rata calculations. I had no idea that having money in another traditional IRA would affect my backdoor Roth conversion tax treatment. It saved me from potentially significant reporting errors. Definitely recommend for anyone dealing with these complicated retirement account conversions - especially if your broker isn't providing clear guidance on the tax forms.

If you're struggling to get answers about your backdoor Roth from Fidelity, you might want to try Claimyr (https://claimyr.com) to get through to the IRS directly. I was in your exact situation last year and spent hours on hold trying to confirm I was filling out Form 8606 correctly. I used their service (video of how it works: https://youtu.be/_kiP6q8DX5c) and got connected to an IRS rep in about 20 minutes instead of the 2+ hours I was experiencing before. The agent walked me through exactly how to document my backdoor Roth correctly and explained which codes to look for on my forms. They basically call the IRS for you and when they reach an agent, they call you to connect you. Saved me tons of time and frustration trying to get official guidance.

I need to apologize for my skeptical comment earlier. After filing my taxes got more complicated with this backdoor Roth situation, I decided to try Claimyr out of desperation when I couldn't get through to the IRS after multiple attempts. It actually worked exactly as described. They called the IRS, waited on hold (about 45 minutes in my case), and then connected me directly with an IRS representative. The agent I spoke with was able to confirm exactly how to handle my backdoor Roth reporting on Form 8606 and cleared up my confusion about the distribution code on my 1099-R. I was absolutely convinced this kind of service couldn't be legitimate, but it saved me hours of hold time and the direct guidance from the IRS gave me confidence my tax return is correct. Sometimes admitting you were wrong is the right thing to do.

Something important that nobody has mentioned yet - make sure you get the timing right if you're doing a backdoor Roth in the future. I messed up last year by waiting several months between my traditional IRA contribution and the conversion, which resulted in significant growth and therefore more taxes. The ideal approach is: 1. Make non-deductible contribution to Traditional IRA 2. Convert to Roth IRA as soon as possible (ideally within days) 3. Keep thorough records of both transactions 4. Make sure you file Form 8606 every year you make non-deductible contributions, even if you don't convert that year The growth between contribution and conversion is what creates the taxable event. If you convert immediately, there's usually minimal growth to worry about.

One thing that seriously confused me with backdoor Roth conversions was understanding why the 1099-R shows the full amount as taxable when it shouldn't be if you made non-deductible contributions. Tax software doesn't automatically know your contribution was non-deductible. That's why Form 8606 is so important - it's where you tell the IRS "Hey, I already paid tax on this money, don't tax me again!" If you're struggling with the software interface, sometimes it helps to read through the actual Form 8606 instructions on the IRS website first, then go back to the software. The actual form is more straightforward than how some tax apps present it.

Warning: Don't forget that if you have ANY other traditional IRA funds (including SEP or SIMPLE IRAs), you'll get hit with the pro-rata rule when doing backdoor Roth conversions. This catches a lot of people by surprise. For example, if you have $50,000 in a traditional IRA from an old 401k rollover, and you add $6,000 non-deductible for a backdoor Roth, you can't just convert the $6,000 and call it non-taxable. The IRS considers all your IRA funds as one pool, so only about 10.7% of your conversion would be non-taxable.