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Retirement tax questions
Thank you very much!
After a lot of trial and error with the software I found out that I could get information on line 8 of form 8606 if I said my basis at the end of 2020 was 6000. Doing this makes it seem like I made the contribution on 12/31/2020 and then converted it on 1/1/2021. This has the effect of making the taxable amount 0 since I have the non-deductible basis in there to convert. I am curious as to your thoughts on this method as it seems to produce the desired results and in some sense is just reiterating what I did on my 2020 tax return. I thought of this because I didn't know if not putting the 1099-R on my 2021 return would be a red flag for the IRS.
But ultimately I think what you mentioned is right, the 1099-R was essentially reported already in 2020 and my custodian just reporting to the IRS that I did what I said I did on my 2020 return.