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Level 1
April 22, 2023
Question

Completing the 8606 Form

  • April 22, 2023
  • 1 reply
  • 0 views

I made a $6,000 non-deductible contribution to my traditional IRA between 1/1/23 and 4/18/23 for the 2022 tax year.  The IRA account to which I made the contribution already had $3,349.20 in deductible contributions (rolled over from a prior employer 401k plan).  I intend to do a Roth conversion in the future.

 

I completed the 8606 form for 2022 for the first time in my tax reporting history.  I indicated only the $6,000 contribution, but not the overall basis that included the $3,349.20.  Did I complete the 8606 form correctly?  If not, what should have I done?

    1 reply

    Critter-3
    Level 15
    April 22, 2023

    The 8606 only reports the non deductible contributions ... there is no place to enter deductible contributions made in the past. 

    fanfare
    Level 15
    April 22, 2023

    "$3,349.20 in deductible contributions"

    is not part of your basis.

     

    in your situation, a Roth conversion will always be taxed,

    because the distribution includes only a prorated fraction of your basis, leaving the rest of the basis for next time.

     

    @danieljgreenstein