@drshineraju wrote:
@macuser_22 I did conversion for 2019 in 2020. Balance in traditional IRA was zero after that.
Then contributed $6000 for 2020. However the conversion for 2020 was done in 2021, hence this $6000 shows up as balance in my traditional IRA at the end of 2020.
This is an issue that the IRS has never ruled on AFAIK. Physically the money was not in the IRA at the end of 2020, but due to the legal fiction that deems it to be a Dec 31, 2020 contribution it was.
Almost everyone will answer the question that the year end value was zero. I have never heard of the IRS questioning that. If you go by your year end bank statement, it shoud show the year end value as zero.
I would answer the question with zero 2020 year and value.
**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.**
