@crazyRoth333 wrote:
>It appear that you thought $5,500 was excess after it was in the Roth and removed it from the Roth.
Hmm. Not understanding what you mean. I put in 6k, converted 6.1k, took the whole thing out, so there should be no excess at all, since the entire amount was removed, just a bit circuitous.
I see.
Traditional and Roth IRA's are separate. You had an excess in the Traditional IRA at the point that you made the contribution, but you did NOT remove it, instead you converted it to a Roth IRA which was an invalid conversion and created an excess in the Roth which you removed and is not taxable.
What you should do is amend 2019 and enter the $6,000 Traditional IRA contribution as a non-deductible contribution to generate a 2019 8606 got with the $6,000 on line 1, 3 and 14.
Then enter the 2020 1099-R in 2020 and use the 8606 line 14 basis to offset the tax (this assumes that you have no other Traditional IRA's and the Traditional IRA value is zero).
**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.**
