Retirement tax questions

I was asked this morning if my problem was resolved and if it was, to pick the answer that was most helpful.

 

Yes, my problem was resolved.  I would say that the solution was found using information I got from some of the postings here.  I would also say that @macuser_22 gave many good and informative responses, for which I am grateful.

 

But the solution to my problem was to go back and look at the forms and worksheets of my 2019 taxes and make sure the information that was transferred from the 2019 taxes to my 2020 taxes actually made sense.  @dmertz had posted a response to a related question last year that I reread that was also helpful -- Ignore the Code-R 1099-R that I would get in 2020.  Someone made a similar comment here -- that the Code-R 1099-R I got for in 2021 for 2020 isn't used in my 2020 taxes.

 

So... if someone has stumbled on this discussion because they feel the conversion of a previously recharacterized contribution shouldn't have been a taxable event, my advice would be to look at the lines related to "basis" for the tax year where the recharacterization was reported.

 

In my case, that meant looking at lines 1-3 and 18-21 of IRA Info Wks and line 14 of Form 8606 for Tax Year 2019  and comparing that information with lines 1 and 12 of IRA Info Wks and line 2 of Form 8606 for Tax Year 2020.  Line 14 of Form 8606 for TY19 should have matched line 2 of Form 8606 for TY20.

 

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