dmertz
Level 15

Retirement tax questions

1.  You are correct that the taxable amount is $1,010.

 

2.  The Roth conversion performed in 2019 is reportable on your 2019 tax return, not on your 2018 tax return.  The $5,500 from line 14 of your 2018 Form 8606 propagates to line 2 of your 2019 Form 8606.  The amount presently missing from your 2019 Form 8606 is the amount of your $6,000 nondeductible traditional IRA contribution that resulted from the recharacterization of your $6,000 Roth IRA contribution.  Make sure that you go back to the Traditional and Roth IRA Contributions section in 2019 TurboTax and, just as you did (or should have done) for your 2018 contribution in 2018 TurboTax, enter the $6,000 Roth IRA contribution, indicate that you recharacterized $6,000, then indicate, if TurboTax asks, that the resulting traditional IRA contribution is to be nondeductible.  TurboTax will include this on line 1 of your 2019 Form 8606 to be added to the $5,500 on line 2.

 

3.  Your 2018 tax return must include 2018 Form 8606 showing your nondeductible $5,500 contribution to your traditional IRA for 2018, and perhaps already does.  If not, it must be filed.  This would have been done by entering your $5,500 Roth IRA contribution, indicating that you switched/recharacterized the $5,500 to be a traditional IRA contribution, then, if TurboTax asks, indicate that you want the entire $5,500 to be treated as nondeductible.  Line 14 of the  2018 Form 8606 will show $5,500.

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