@dmertz @macuser_22
Thank you for your time and comprehensive responses. Following this rationale of using Table 1-1, there is still an uncertainty. I will explain in detail so that you can re-create it on your end using TurboTax.
Senario:
Under 65 using BackDoor Roth annually. Contributions to Traditional IRA and Conversion to Roth for the tax year are made between January 1 and April 15 of the following year. There is an existing Traditional IRA balance.
2020: $6,000 contributed to Traditional IRA (for tax year 2019). $6,000 converted to Roth (for tax year 2019). Both of these transactions occur in February of 2020.
2021: $6,000 contributed to Traditional IRA (for tax year 2020). $6,000 converted to Roth (for tax year 2020). Both of these transactions occur in February of 2021.
Question:
Table 1-1 Line 2 states:
Enter the total of all contributions made to your traditional IRAs during 2019 and all contributions made during 2020 that were for 2019, whether or not deductible. Don't include rollover contributions properly rolled over into IRAs. Also, don't include certain returned contributions described in the instructions for line 7, Part I, of Form 8606
The Table 1-1 example above was published in 2019, so assume all references to 2019 are 2020 and 2020 are 2021.
In this scenario example, should line 2 be $6,000 or $12,000? I assume the "that were for 2020" language is intended to qualify both (1) the 2020 contributions and (2) the contributions made during 2021. Which means it would only be $6,000.
Thoughts?
