@crazyRoth333 wrote:
Thanks for your help Macuser22.
I didn't file 8606 in 2019 because it said "if the excess contribution is removed within filing deadline" do not include it in 8606. But now I realize the problem of not having a 8606 leaves me with no basis for the conversion.
I also didn't have schedule1 either. None of ira contribution were deducted in 2019.
I see that in 2020 8606 line 2 that there's something about adjusted basis due to returned excess contribution in the instructions. I wonder if there's where I could put in a statement explaining this whole mess.
Why was it excess. Did you contribute more than your earned compensation to the Traditional IRA but converted it to the Roth without removing it ?
You contributed $6,000 and removed $5,500 - where is the other $500?
Your conversion is fully taxable and you have no basis in the IRA to offset the tax.
Line 2 only says to *reduce* the amount for any amount returned.
It appear that you thought $5,500 was excess after it was in the Roth and removed it from the Roth.
**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.**
