I am currently working on correcting my total basis for my Traditional IRA. I made a series of missteps that I'd like to correct to have an up to date basis for my tIRA before I convert to Roth. See below:2018 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)2019 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)2019 after-tax contributions (have 8606 form but 2018 basis didnt carry over)2020 after-tax contributions (have 8606 form but 2019 basis didnt cary over)2021 after-tax contributions (have 8606 form but 2019+2020 basis didnt cary over)Here is how my actual basis should look:What is the best way to get my basis back up to date? I think I understand amending 8606 forms but how do I handle the Recharacterizations? A step by step guide of what to do would be very help! Thanks so much in advance

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Question

Amending Prior 8606 Forms? Correcting Total Basis for tIRA

Forum|Forum|2 years ago
September 14, 2023
1 reply
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I am currently working on correcting my total basis for my Traditional IRA. I made a series of missteps that I'd like to correct to have an up to date basis for my tIRA before I convert to Roth. See below:

2018 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)
2019 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)
2019 after-tax contributions (have 8606 form but 2018 basis didnt carry over)
2020 after-tax contributions (have 8606 form but 2019 basis didnt cary over)
2021 after-tax contributions (have 8606 form but 2019+2020 basis didnt cary over)

Here is how my actual basis should look:

What is the best way to get my basis back up to date? I think I understand amending 8606 forms but how do I handle the Recharacterizations? A step by step guide of what to do would be very help! Thanks so much in advance

Not A Product Question

dmertz

Level 15

A recharacterization from a Roth IRA to a traditional IRA is treated as if the contribution was originally made to the traditional IRA on the date of the original contribution. Whatever portion of the resulting traditional IRA contribution is nondeductible adds to your basis for that year.

DenverTechieAuthor

Level 2

Thanks and this just goes onto form 8606 or somewhere else? If I did $5500 non deductible contribution AND and $1000 rIRA -> tIRA rollover in the same year - how do I code this on my return / amendment?

fanfare

Level 15

Great - thanks for the clarification. So does my above table look correct? In terms of amending my 8606 should I send an amended 8606 for every year?

The proper way to file Form 8606 is attached to Form 1040-X.
Form 8606 can be mailed by itself only when you are otherwise not required to file a tax return.

Do you have the correct taxable amount on Line 4b and did not take a deduction?
After you e-File,
get Form 1040-X from IRS website and mail it in with your 8606, which you can also get in fillable PDF.
Note: since you are not changing any dollar amounts on your amended tax return, you can leave all the lines 1-23 EMPTY.

Part III -- Explain what you did.

@DenverTechie