@randybrandt1 wrote:
OK, note to self and anyone who happens across this post - - AVOID PRIOR YEAR CONTRIBUTIONS TO A TRAD IF YOU PLAN TO BACKDOOR TO ROTH.
Thanks for the clarification and follow up MacUser! I get it now.
I will say, and this is no knock on you.. As u don't make the rules.. But this is bonkers! From my perspective if the IRS is going to allow for prior year contributions they should account for it in their process for the same tax year. I'm not exactly excited about amending 2019 just to have a number populate in 2020. Sorry, venting, THX!
It is not the IRS - it is Congress that makes the tax law.
The tax law specifically says that a contribution made for a prior year before the filing due date for the prior year is deemed to have been made on Dec 31 of the prior year. Therefore it is not a 2020 contribution, it is a 2019 contribution legally made in 2019 so it can only be reported on a 2019 tax return.
**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.**
