My wife and I each opened a ROTH IRA account with C. Schwab in 2005 and we contribute the Maximum each year by using personal checks. Yes it is a private individual account.
TT has tricky questions on the ROTH & Traditional IRA bundled together and I answered I contributed $6,500 each. In the end, I saw my 2019 tax form (& prior returns) on IRA information worksheets : lines 7 - Basis in IRA Conversions & Line 9 Conversion basis carryover as of 12/31/2019 filled with the # $6,500; also Lines 23, 51 & 52 filled with $6,500 on the spouse column. There were no entry on Line 33 - Regular Roth IRA contribution. Does that # on Line 7 means the $6,500 was funded from another pretax account? and as a result $6,500 was added to our 2019 our AGI to be taxed? However, in spite of that, my 2019 1040 Line 4a – IRA distribution is blank. Strange – should it be $6,500 if they is a conversion recorded in 4a?
I just happened to notice this staff when I was doing my 2020 tax return the same way – enter our Roth contribution for the year. As soon as I entered the $7000, I saw my pending my tax dollars increase right away. Can I not entering any number on Roth since it is funded with after tax dollars?
I just researched IRS: it said "Contribution to a ROTH IRA is not deductible (and you don't report the contribution on your tax return). Please advise. Thanks
