Hi all,
I contributed $6K (post-tax) to an existing traditional IRA before the 2022 tax deadline for 2021. This account had about $5K in it. I immediately converted the full $11K to a Roth IRA, thinking it would 'count' for 2021. Since this took place in 2022, I did not receive a 1099-R and I ended up not filing form 8606 for 2021.
Also in 2022, but after the 2022 tax deadline for 2021, I contributed another $6K (post-tax) to the same traditional IRA and immediately converted it to a Roth IRA.
In January 2023 I received form 1099-R stating $17K in boxes 1 and 2a (gross distribution and taxable amount, respectively).
Also in January 2023, I made another $6.5K (post-tax) contribution to a traditional IRA followed by Roth IRA conversion.
I'm in my 30s.
As I file my 2022 taxes, I think I have to:
- File form 8606 for 2021 including a letter explaining reasonable cause for missing it in last year's return. Here I will state I made a non-deductible $6K contribution to a traditional IRA.
- File form 8606 for 2022. Here I will state I made a non-deductible $6K contribution to a traditional IRA and a $17K conversion of which only $5K are taxable.
- Do nothing about the 2023 contribution and conversion.
This way I pay taxes on the $5K but not the other contributions with rollover.
Is this right? Please let me know if you need more information to provide advice and thanks in advance.
(edited to fix typo)
