Hi there, the way I did my spouse's backdoor Roth last year is killing me this year.
Here's my scenario:
Despite doing the backdoor for years, in December of 2019, I accidentally put $6000 directly into my wife's Vanguard Roth account for the 2019 contribution. I realized the mistake and recharacterized into a traditional IRA in March of 2020. (As an aside, for reasons that Vanguard explained to me, and which I briefly understood, but which I can't remember now, despite having $6000 in a money market account, when recharacterized the total was reduced to $5793. ) I then took that $5793 in the traditional IRA account and proceeded to invest it in a 2045 target account which grew to $7787 by December of 2020 and then I did a conversion back to a Roth account. I did the 2020 year contribution simply in December by putting $6000 into a money market into the traditional IRA and then converting a week later into the backdoor Roth.
My wife's 2020 1099 form has 3 distributions listed on it for 2020, the $6000 I did correctly the easy way, the $7787 which are both listed as "contributory IRA". Then the $5793 is listed as "Roth IRA" with a taxable amount of 0 and a distribution code of R on the form for the recharacterization. When I enter the 1099-R data which includes the $5793 into Turbo Tax, it states that I need to amend the 2019 returns, but I'm not sure what to amend.
Her 1099-R for 2019 tax year looks as follows:
1. 6,000
2. 5,500
3. 11,500
4. 6,000
5. 5,500
6. 0
7. 0
8. 5,503
9. 5,503
10. .999
11. 5,500
12. 0
13. 5,500
14. 6,000
15. 0
16. 5,503
17. 5,500
I'm trying to do the taxes on Turbo Tax which always seems to make the Roth more complicated than it needs to be, but any help or guidance anyone could provide would be immensely appreciated.
Thanks so much,
