bitparser
Level 1

Wrongly characterized IRA distribution in last year's filing

Hello,

 

Last year was the first year I did the Backdoor Roth conversion for years 2018 and 2019 (conversion done in 2019 for both). I noticed that I hadn't filed Form 8606 for last year and also mischaracterized the IRA distribution amount as a "Rollover" in my 1040 when it actually should have been a "Conversion". The "Rollover" appears in text alongside the IRA contribution amount in my 1040 in my previous year's return.

 

At first I thought I will just file a standalone Form 8606 for last year's conversion but now with the "Rollover" being there in my 1040, I'm not sure if I also need to file an amended federal tax return.

 

Can anyone help with this situation? Thanks!

‎May 2, 2021 3:34 PM
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macuser_22
Level 15
Level 15

Get your taxes done using TurboTax

If you had a non-deductible 2018 contribution and another non-deducible 2019 contribution then you must amend 2018 and 2019 and file the 8606 for each year.

 

If you actually did a Roth conversion in 2019 can reported it as a non-taxable rollover your amended 2019 must also correctly report that.

**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.**

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‎May 2, 2021 3:46 PM
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bitparser
Level 1

Get your taxes done using TurboTax

Thanks for your reply. I made the contribution for 2018 in 2019 (between Jan-Apr) so I didn't have a 1099-R until I got the 2019 one for both. So would I still need to file an amended return for 2018? My understanding was that you can make an IRA contribution for the previous year up until the tax deadline of the following year.

 

I understand that I need to file an amended return and Form 8606 for 2019. Just wondering if I need to do the same for 2018. 

‎May 2, 2021 5:43 PM
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