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Get your taxes done using TurboTax
Yes, you entered everything correctly.
Yes, you need to keep Form 8606 to keep track of your basis (line 14) that you can carry over to future distributions/conversions. TurboTax already created Form 8606 and IRS Worksheet for you for 2021.
Whenever you take a distribution/make a conversion in the future please make sure you enter the basis from your 2021 Form 8606 when asked for the prior year basis. Then TurboTax will create a new Form 8606 and will calculate the new remaining basis on line 14 to use in the next distribution/conversion.
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March 19, 2022
12:23 PM