@4440864 wrote:
Thanks for the reply. Then I think my 8606 will be simple to just add up all of the contributions I made from 2018, 18, and 19? Since I haven't done and Roth Conversion yet.
Now that you mentioned about 1099-R. In 2020, I started doing 401K In-plan Roth Conversion which as you said I see that in Box 5 I have the after-tax money I contributed. Do I need to report 8606 for 2020 as well? This is still in my 401k plan.
No. The 8606 only applies to the basis that is in a Traditional IRA. Nothing in your 401(k) or Designated Roth goes on a 8606.
I assume that you already know, but I will point it out anyway, that the IRA basis applies to aggregate total of all Traditional, SEP and SIMPLE IRA accounts that you might have so when you take a distribution from any of those, the non-taxable basis must be pro-rated between the distribution and total aggregate IRA value.
Therefor, if your 401(k) rollover IRA is a large amount then non-taxable amount of a small distribution will also be small and most will be taxable.
**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.**
