Last week you helped me through the steps to correctly enter my 1099-R. Sorry but I am back again with a new problem with the same1099-R 2020 $125,000 distribution that I took from my IRA. The $100,000 shows up on Part II of the 8606 Lines 16 and 18 as a ROTH Conversion as we discussed BUT the other $25,000 is not included on 1040 Line 4b. You said Part I of the 8606 didn’t need to be filled in but could this be my problem? The ❗️Form 8606-T (Not Done) is still showing under FORMS IN MY RETURN. I was very careful when entering this 1099-R to say it was not an RMD. When it asks “What Did You Do with the Money.....” I checked the box that says “I moved the money to another retirement acct. “ because if I don’t check this box, the rest of the questions on that screen disappear including “Tell us how much of the $125,000 you moved to an IRA, 401k or other retirement account”. This is where it asks “Amount converted to a Roth IRA account” and I filled in $100,000. Underneath that it says, NOTE: We’ll assume that everything that wasn’t rolled over or converted was cashed out or wound up somewhere other than a retirement account. ....So I click on Continue and answer “No, I didn’t put this money in an HSA.” On the next screen I answer No, this was not a ...2020 Disaster Distribution. That’s it and I am back to the 1099-R Entry screen.
Underneath all my 1099R entries I hit CONTINUE to answer the follow up questions. I answer NO to the disaster distribution question. Next I answer NO I did not make and track nondeductible contributions to my IRA. Next screen I filled in the total values of all my traditional IRAs. (This does not include the converted Roth IRA.) The next screen I answer “I was not required to take an RMD for 2020.” On the next screen I answer the same question for my deceased spouse (no RMD required). And that is the end.
So the big question is, why is my 1040 only showing $100,000 of my $125,000 distribution as taxable when ALL of it is taxable? Both Box 1 and Box 2a on the 1099-R say it is all taxable. Why is the $25,000 not showing up in 1040 Line 4b? Are you sure Part I of my 8606 doesn’t need to be filled in? That ❗️indicates something is not right I think. And if it should be filled in, how do I do it through Step-by-Step? I’ve reviewed all my FORMS and this is the only thing stopping me from filing as far as I can determine. Once again, thanks for your help. 🙏🏽🙏🏽🙏🏽
