DanaB27
Expert Alumni

Retirement tax questions

If you made your 2019 contribution nondeductible/ it was nondeductible because you had a retirement plan at work and were over the income limit then you will have Form 8606 on your 2019 return with a $5,000 basis from the contribution (plus the previous basis of 56). If you didn't make it nondeductible then you have to amend the 2019 return to make it nondeductible.

 

 

On your 2020 return:

 

If your 2019 contribution was deductible and you choose not amend it then this part of the conversion will be taxable on your 2020 return and your entry in step 9 is correct.

 

If your 2019 was nondeductible or your choose to amend the 2019 return to make it nondeductible then you will have to include the $5,000 in step 9 for a basis of $5,056.

 

The $6,000 2020 contribution you will make nondeductible when you enter the contribution as described in the post above.

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