Retirement tax questions

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@wbic1 wrote:

Dmertz,

I did submit individual 8606 every year for the last 10 years to the IRS at each tax filing. I used turbo tax to do my tax filing, and turbo tax automatically generated an 8606 each year.  I used the 8606 to report each year contribution as a non-deductible after tax contribution. Since I was not aware of the back door roth conversion, I never used the 8606 to convert my tradditonal IRA monies to a Roth IRA.

 

i currently have 10 years of accumulation of traddition IRA monies in my tradditional IRA account,and the current total amount of money is less than what I contributed at the beginning due to my bad investing strategy.

Question: can I use one form 8606 (instead of 10 forms) to convert all the traddtional IRA money from the last 10 years of contribution  to my Roth IRA account? 

 

 

 

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You only use the last filed 8606.   Each filed 8606 should show the prior basis, the additional basis and the total carry forward basis.    Each 8606 replaces the last 8606.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2020.

That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.

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.