I received two 1099-R forms after attempting the Backdoor Roth process, and I wanted to verify everything is as expected.
- 1099R with distribution code G - I had X dollars in a traditional IRA and did a rollover such that there is $0 left in that account at the end of the year.
- It says gross distribution of X dollars, with $0 taxable amount, and "Total distribution" is marked.
- 1099R with code 2 - I had contributed $6k (nondeductible) to a traditional IRA (same account as part 1) and converted $6k to a Roth IRA by end of year.
- It says gross distribution and taxable amount are $6k.
- "Taxable amount not determined" and "Total distribution" are both marked
My questions are mainly for the second form:
- Is the Distribution Code "2" expected in this case?
- Should the taxable amount be $6k? Does this mean I will need to pay taxes again on this post-tax money?
- The events that generated forms 1) and 2) did not happen sequentially (the $6k contribution was mixed in with the rest, but exactly $6k was converted). I believe that doesn't matter since it all happened by the year's end - is that correct?
