@DrDeadPan wrote:
3) In the area where it says to enter 2018 Total basis - I do not have a 2018 Form 8606 to copy this from but rather than saying 0 , I entered 5500 this is what I understood I should enter based on the last post.
3) It did ask a question - What is the value of your traditional IRA as of Dec 31, 2019 - I did not know what to enter here - would it be 6000, 11500 or zero considering it was all converted? None of the values seemed to impact my tax liability which was much higher because TT calculates a taxable income of USD 3943 ( see below)
In order to claim the 2018 non-deductible basis you can only do that if you reported it to the IRS on a 2018 8606 form of the IRS will disallow it and it will be lost. You can either amend 2018 to add the 8606 or just download and manually fill out a 2018 8606 and mile it separately to the IRS.
https://www.irs.gov/pub/irs-prior/f8606--2018.pdf
https://www.irs.gov/pub/irs-prior/i8606--2018.pdf
A backdoor Roth ONLY works if the 2019 December market value of all existing Traditional IRA accounts was zero. You get that amount from the year end statement for your 2019 IRA Dec 31 balance that the financial institution that holds the IRA issues.
As I said above: "NOTE: If there is an * next to line 15 then 6-15 will be blank and the calculations will be on the "Taxable IRA Distributions worksheet instead."
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
