How Can I Enter Form 8606 - Back-Door Roth Conversion in ProWeb? 

Form 8606 is used for, among others, reporting a "backdoor Roth IRA" conversion. This is a non-IRS term referring to the Conversion of funds to a Roth IRA from either a traditional IRA or 401 (k) plan. Money rolled into the IRA is subject to tax provided that it has not been taxed. This includes income from the money until such time that it is converted to a Roth IRA. 

To report a backdoor Roth IRA Conversion: 

• Go to the Federal Section of the tax return (Form 1040) 
• Select Deductions 
• Then select Adjustments 
• Proceed to Nondeductible IRAs 
• Then click on the option "Net Amount converted from traditional, SEP, and SIMPLE IRAs to Roth IRAs in 20xx"  and enter the converted amount. 

The amount that is to be taxed will roll onto Line 4b of Form 1040 as a Taxable IRA Distribution. 

Additional Information:

IRS: FAQs Regarding IRA Rollovers and Roth Conversions

IRS: Topic No. 451 Individual Retirement Arrangements (IRAs)

IRS: Topic No. 413 Rollovers from Retirement Plans

IRS: Instructions for Form 8606, Non-Deductible IRAs

IRS: Publication 590-A, Individual Retirement Arrangements (IRAs) 2020 - need to update for 2021