@goyal_raj wrote:
Thanks macuser_22.
The basis on my 2019 8606 was not correct as it did not show my 2018 contribution. Not sure why. So in my current year return i changed the basis to 11500 and it corrected the total basis to 17500 and the added tax got removed.
Should I file an amended 8606 for 2019? Which form? Can I file just the 8606 alone?
In my 1099-R however, it shows 3 distributions of 17592, 6000 and 5.09. On the Form 1040 for 2020 I see that it included a distribution of 17597 out of which 97 is taxable but I do not see the impact of the 6000 that I had contributed by mistake and had got reversed and paid back to my account. It is shown separately on my 1099-R though and the total withdrawals are shown as 23597. How to make sure I acount for that 6000 correctly?
I also noticed that in my spouse's account, I think she contributed to a traditional IRA and then converted to Roth but the 1099-R statement shows only 11500 converted to Roth and 6000 are shown as direct contribution in the activity report for Roth. I am checking with my broker but this would mean that i should take money out of Roth (given that i am over the income limit) and pay penalty etc. Since I have not filed the return yet, I can withdraw it right away and just have to pay 10% penalty on 6000 and tax on any gains? IS that right? Is there a way to avoid this penalty given that I think she contributed to IRA first and then converted but I can't seem to find any audit trail for it.
Thanks again for your help,
Appreciate it
Yes you can file an amended 8606 by itself it it does not change the tax. You might also need to file 2018 8606 if you did not file one.
I don't know what you mean by "3 distributions" unless this is a financial institution that separates funds as different accounts and reports them on separate lines on the 1099-R form.
**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.**
