This month I contributed 6,000$ to a Traditional IRA for year 2020 and a week later a transferred this amount to a Roth IRA (backdoor) open with the same trustee. Due to my MAGI, this contribution is non deductible and I also don't qualify to contribute directly to Roth IRA.
Turbo Tax is asking me: How much of the 6,000$ you contributed to a traditional IRA for 2020 did you switch or recharacterize to a Roth IRA?
I guess the correct answer is 0$ and this action is considered a conversion, I assume that my financial institution will send me an 1099R form next year for this action.
Last question: if this is first time when I contribute to an IRA, the amount did have any gains and I already paid taxes for it, I assume that next year I will not owe any additional taxes.
Thank you.
