Sarmor
Returning Member

Retirement tax questions

Hi,

 

Ty for clearing this up


Here are some remaining questions:


1) When you say the earnings are only taxed after they are finally distributed, do you mean when they are converted from traditional back to Roth  and I get a a 1099R form (on tax 2021 form) or do you mean when I finally withdraw the money (like after age 59.5)?  If you mean the latter, isn’t it true earnings are never taxed for Roth?   Did you mean if ai withdrew from Traditional IRA earnings would be taxed?  In this case I am basically putting money back in Roth so earnings will never be taxed unless withdraw early, right?

 

2) Also, as far as reporting the back door conversion of this amount from Traditional back to Roth, I can’t do this until next year’s Tax form 2021, right?  Is this bc I won’t get the 1099-R for this distribution until 2022?   It seems conversions have to be reported on tax form year they were done in and not for what year they were done for.

 

Thx