fanfare, I was on two different threads because I was in communication with two different turbotax support persons (critter-13 and macuser) on two different questions. You will now be my third.
I have a questions for you.
Question: Can I convert my 2016 traditional IRA contribution 2016 to my roth ira today? I just recently learn of this back door roth conversion and also I recently learned of form 8606. I learned that Turbotax failed to generate an 8606 for my 2016 tax filing so I had to send one in yesterday.
I contributed $3000 to my IRA in 2016 and of course I lost some of that $3000 through stock trading. My balance in my IRA prior to my 2020 IRA contribution was only $2,200. I lost money. That means I did not make money. That means I do not owe tax or interest.
I have that $2,200 sitting in the traditional IRA today and I now want to convert it to my roth ira.
Am I allowed to do this back door conversion?
