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After you file
Let me put this a different way since you followed up and I may not know the whole story! Your 8606 each year will track how much money you have already paid taxes on through that tax year. This means your 2022 contribution to 2021 counts on the 2021 8606 as income that has been taxed which gives you a basis of already taxed money.
Your 2022 8606 will have $12,000 on line 14 as you have put in that much already- that I know about, it could be more! If you have contributed in prior years, the line 14 should be larger and include any other amounts previously contributed.
Several times, Congress has introduced taxing the interest when you take it out. The 8606 would make sure you are not taxed on the money you put in by mistake.
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March 14, 2023
3:57 PM