Just looking at 2017, the 8606 does not reflect with what you said you did.
You said " 2017 tax filing:
- Contributed $5,500 for tax year 2017 in a non deductible IRA in Jan-Apr 2018. Non-deductible account balance prior to contribution was $0 and in 3 days after $5500 contribution, I converted entire account balance to my Roth, thus making no deductible account balance $0 again.
Line 4 on the 20-17 8606 shows the $5,500 contribution made for 2018 in 2018 which is correct. Line 8 on the 2017 8606 indicated that you reported a $5,500 conversion *in* 2017. That would leave $5,500 of non-deductible basis to carry to 2018 on line 14. Since the 2017 year end value was zero, line 13 shows that $5,500 of the $5,005 conversion was not taxable leaving $5 of taxable interest.
Your 2018 8606 correctly shows that the carry-forward 2017 8606 line 14 $5,500 carried to line 2 and a $5,500 2018 contribution on line 1. It does not show any 2018 conversions at all in 2018 leaving the $11,000 on line 14 to carry to 2019 - which would leave a IRA 2018 year end value of at least $11,000.
For 2017 did you convert $5,500 in 2017 or 2018?
Did you confuse the April 15 due date to make IRA *contributions* for the previous year with conversions that must be done before December 31, to be for that tax year. You cannot convert in 2018 and report it in 2017.
**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.**
