Hi,
Following up here. Ever since 2021 (Where I made 2x 6k contributions for both tax year 2021 and 2020, both within 2021), I've done Contributions & immediate conversions within each Tax year.
e.g.
- 2022: Single 6k contribution and immediate conversion within 2022
- 2023: Single 6.5k contribution and immediate conversion within 2023
For the last two years (Tax year 2022 and tax year 2023), I always trip up on the question "Any nondeductible contributions to IRA?". I *believe* I hit Yes here, but want to confirm as many articles mention not having to hit Yes if you have a planned "clean" contribution within the tax year. Subsequently, it asks for my Total IRA basis. If I look at form 8606 for last few years:
- 2021 Form 8606
- Line 2: 6,000
- Line 14: 12,000
- 2022 Form 8606
- 2023 Form 8606: Confirming this will again be:
Additional question:
- Ever since I made two contributions in 2021 (one for tax year 2020, one for tax year 2021), can I always expect to carry this 6k basis forward? e.g. Will I always have form 8606 with 6k basis?
- Even if I make clean, planned yearly contributions with immediate conversions within the same year, will I always have to hit "Yes" to "Any nondeductible contributions to IRA?" (because of what happened in 2021)?
- Confirming Income summary in turbotax for 2022 and 2023 should both show IRA distributions - nontaxable?
Thanks!
