I understood.
Sorry, I was not able to explain myself clearly.
I want to have Savers Credit and avoid State Tax on my t-ira contributions and move money to ROTH. So I am paying Fed taxes on IRA contributions mount. I can understand this might be too much.
Also I just came to know that, I have around $1000 worth of interest / misc and ordinary dividend income for year 2022. So my AGI will increase by that amount.
But, what I am trying to do is below -
1. For spouse - Contribute to 6k to traditional IRA ( deductible) for year 2022.
Now, immediately convert account to ROTH for amount 5000. So it will be a distribution (income added to Federal taxes) but avoid IL state taxes.
2. Now, 1k will remain in traditional and reduce my AGI along with my roth -> traditional IRA conversion.
My Q about point 1 is -> As per my understanding I would get 1099-R in next year i.e 2024 January.
So is there any way to achieve this ? So I only have 7k in T-IRA and also avoid paying IL state taxes on entire 12k.
If I would have done this within year 2022 ( before Dec) then I would have got 1099R in Jan 23 and reported in accordingly.
Sorry for long post. @dmertz appreciate your help. Thanks.
