@TheUnluckyOne wrote:
Thank you. You are correct. When I entered Traditional IRA basis as as on Dec 31st, 2020 as $7,000, the refund came back. I am one step ahead now.
Coming to my problem. it is little more acute. I am above 50 years. I made a contribution of $7,000 to traditional ira on March 2021 for Prior Year 2020 and immediately transferrred to ROTH IRA. My wages are above deductible contribution limits. So I am sure it is non deductible. Later in Aug 2021, I again made a contribution of $7,000 again and converted to ROTH IRA. This was for year 2021
The 1099-R from Fidelity for year 2021 shows 14,000.03 and taxable amount also shows the same amount. How do I account this? Please advise
A 2020 contribution must be reported on your 2020 tax return and if non-deductible on a 2020 8606 form line 1 3 & 14. That would transfer to the 2021 8600 line 2 so line 3 woiud then be the total of 2020 and 2021 ($14,000).
**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.**
