Hi Dana,
You have helped my friend with similar situation and he has recommended that i seek your help with my situation.
I opened a Traditional IRA account on Apr 1st 2020 and made a contribution of 6000 for the year 2019 and a contribution of 7000 (50+) for 2020. I simply parked the money in the account.
On Apr 20th, I used backdoor IRA method to roll my both the contributions to ROTH IRA.
When i filed my 2019 taxes, T-8606 was generated with following entries:
Line 1 = 6K
Line 2 = 0
Line 3 = 6K
Line 14 = 6K
All other lines were zero or blank.
I received form 1099-R for 2020 with Line 1 and 2a reading 13K. Line 2b says Taxable amount not determined. When i am filing taxes for 2020,
Form 8606 being generated is shows following entries with $4550 showing as taxable amount.
Line 1 = 7K
line 2 = 6K
Line 3 = 13K
Line 4 = 0
Line 5 = 13K
Line 13 = 8450* (with Asterix)
Line 14 = 4550
My contributions to Traditional IRA are non-deductible. My MAGI is high to be able to make deductible contributions to taxable IRA. I am failing to understand why 4550 is coming up taxable?
Please guide me what am i doing wrong.
Thank you!
