Withdrawal of nondeductible IRA Form 8606

[ttbtaxes]

I'm confused about how to report this transaction.

Client did a "backdoor Roth IRA". Client's income was too high to make a regular IRA or Roth IRA contribution. in 2013, he made a $5,000 non-deductible IRA contribution then immediately converted it to a Roth IRA. Client has not other IRAs except this.

He got a 2013 1099-R showing $5,000 total distribution Box 1 and taxable of $5,000 in Box 2.

I report the nondeductible $5,000 contribution on Line 1 of the Form 8606.

The distribution from the IRA should not be taxable because it was a distribution of a non-deductible IRA. The 1099-R is showing $5,000 as taxable. How do I report this distribution on his return so that it is not taxable??

[Gary2]

I'm confused about how to report this transaction.

Client did a "backdoor Roth IRA". Client's income was too high to make a regular IRA or Roth IRA contribution. in 2013, he made a $5,000 non-deductible IRA contribution then immediately converted it to a Roth IRA. Client has not other IRAs except this.

He got a 2013 1099-R showing $5,000 total distribution Box 1 and taxable of $5,000 in Box 2.

I report the nondeductible $5,000 contribution on Line 1 of the Form 8606.

The distribution from the IRA should not be taxable because it was a distribution of a non-deductible IRA. The 1099-R is showing $5,000 as taxable. How do I report this distribution on his return so that it is not taxable??

Conversions to Roths go on Part II of the 8606. Box 2a is meaningless for IRAs. Presumably they checked the "taxable amount not determined".

[TaxGuyBill]

Does the client have any IRA accounts that WERE deductible? If so, the conversion needs to be prorated based on the total amount in all Traditional IRA accounts.

http://www.irs.gov/publications/p590/ch01.html#en_US_2013_publink1000230818