DanaB27
Expert Alumni

After you file

To clarify, you made a nondeductible Traditional IRA contribution for 2023 and then converted this in 2024? If yes but you do not show a basis on line 14 on your 2023 Form 8606 then you need to amend your return to enter the nondeductible Traditional IRA contribution. Please see How do I amend my federal tax return for a prior year?

 

On your 2023 return:

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “traditional IRA
  4. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  5. Enter the amount you contributed
  6. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  7. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
  8. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (if you had a basis in the prior year)
  9. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

 

 

On your 2024 return you will enter the basis from the 2023 Form 8606 line 14 after you enter the Form 1099-R:

 

  1. Click on "Search" on the top right and type “1099-R”  
  2. Click on “Jump to 1099-R”
  3. Click "Continue" and enter the information from your 1099-R
  4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion" screen and choose “I converted some or all of it to a Roth IRA
  5. On the "Here's your 1099-R info" screen click "Continue"
  6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
  7. Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

 

@nanhtsai 

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