@ahbn41 wrote:
Macuser_22,
You did not see or read my earliest posts. I intend to do backdoor roth conversion. My wife and i jointly filed. I am over 50s since 2016. I was told that my maximum NONdeductible IRA contribution is $7000. I contributed $3000 in 2016 and $2000 in 2020 so far.
I do not understand what you are trying to tell me. Please explain
Thanks
Read the IRS Publication.
The maximum that you can contribution is the LESSER of $7,000 OR your taxable compensation for the year. As long as you (and your spouse on a joint) return had at least $3,000 of taxable contribution the no problem.
(I was only answering your prior question about why you might not qualify by posting the IRS rules so yiu could read the "why" for yourself.).
Be sure to enter your $2,000 2020 non-deductible contribution in the 2020 IRA contributions section when doing 2020 tax next year, so that it will appear on line 1 of your 2020 8606 form. Your 2019 $3,000 nondeductible contribution (from line 14 on the 8606 that you are mail would be entered in the 1099-R interview when it asks for non-deductible contributions. That would go on line 2 of the 2020 8606 and the total of $5,000 would be on line 3 to offset the tax computed for the "backdoor Roth" on lines 6-15.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
