Here is my situation:
- in 2020 converted an ex-employer 401(k) to rollover IRA (about $100K on Fidelity)
- in 2020 found out about backdoor Roth and opened Traditional IRA with $6K and converted to Roth IRA next day (on TD Ameritrade)
- previously contributed to Roth in 1998, 1999 ($2K each year) when my income allowed for Roth contribution but never filed 8606.
- Now I found out that since I have a rollover IRA, I should also be filing 8606 and there might have been no benefit in doing a backdoor Roth. Should I file 8606 for 1998, 1999 and 2020 when I made nondeductible contributions.
Can someone explain how I need to fix this. I do want to put $6K in backdoor every year but seems it doesn't make sense if you have a traditional IRA.
I am reviewing form 8606. What does line 2 mean - total basis of traditional IRAs? In my case, would this be total nondeductible contributions (2K in 1998, 2K in 1999 and $6K in 2020)?
