For 2021, I received three 1099-R's.
- Let's call the first one 1099R-A:
- $6,000 after-tax traditional IRA contribution made in 2021 for 2020 tax year
- before conversion, made $50 in capital gains
- converted all $6,050 to Roth IRA in 2021, thus receiving a 1099-R for 2021
- The second one we'll call 1099R-B:
- $6,000 after-tax traditional IRA contribution made in 2021 for 2021 tax year
- converted all $6,000 to Roth IRA in 2021, thus receiving a 1099-R for 2021
- The third we'll call 1099R-C, but shouldn't be relevant because I'm not seeing it causing an issue in the 1040 tax summary. It was a $4,500 Roth IRA excess contribution removal. I'm mentioning it just in case it's causing an issue.
On my 1040 line 4a is showing $12,050 for IRA distributions, and line 4b is showing that $6,050 is taxable. Why is this happening? All the contributions were after-tax and treated as non-deductible, so none of the backdoor conversions should be taxable, right?
I experimented by deleting 1099R-B ($6,000), and as expected, the taxable amount on line 4b became $50.
