Thanks for your detailed reply. If I underestand correctly, you are suggesting that the 2019 1099-R should be reported as part of amending my 2018 return, making sure that the $6500 basis is accounted for. That means I do not report it on my 2019 return-- is that correct?
I would also like clarification of the Roth conversion that was done in 2018. Here is the timeline:
In March, 2018, 100% of IRA funds were transferred to the Roth account. (tax on the entire amount was paid as part of the tax return in April, 2019)
In April, 2019, about $6700 was transferred from the Roth account back into the IRA account.
If I amend the 2018 return now, do I still treat the March Roth conversion as 100% taxable, or do I factor in the non-deductibe $6500 as technically part of that conversion, even though it did not come in until 2019? If so, will it trigger any tax on the leftover amount in 2019? Thank you very much!
