Hi,
I am following up on the question below (answered last year). Now that it is one year later, I have to address the 2020 Roth conversion that occurred in February 2021 and the 2021 traditional IRA contribution that was immediately converted to a Roth in February 2021. Please provide assistance with the selections that must be made in order to report this correctly. If it is helpful the 2020 and 2021 contributions are the only ones I have ever made, there are no prior years to address.
Originally submitted March 2021
In February 2021, I contributed to a traditional IRA and then immediately funded a Roth IRA to do a backdoor conversion for calendar year 2020. I completed two on the same day: one for calendar year 2020 and one for calendar year 2021. So I contributed to 2020 tax year and 2021 tax year in 2021, but converted both years in 2021. The calendar year 2021 contribution and conversion I will handle in my 2021 return, but would like to get additional clarity on how to handle the 2020 transaction contributed and converted in 2021.
It is my understanding that there is nothing I need to do for the conversion related to the 2020 contribution that occurred in calendar 2021. I did not receive a 1099-R so there is nothing to report for income (though there should not be any since i immediately converted), and will handle this part with my 2021 return. But I am trying to figure out all of the boxes in 2020 to select for the contribution for 2020:
- Select Traditional IRA
- Confirm on next screen I contributed to a traditional IRA - YES
- Is this a repayment - NO
- Enter total 2020 contributions. Enter same amount in portion funded between Jan. '21 and Apr. '21 (two fields to populate)
- Did you change your mind - NO
- Any excess IRA contributions before 2020 - NO (these are my first two IRA transactions)
- "Any non-deductible Contributions to your IRA? Let us know if you made and kept track of any non-deductible contributions to your traditional IRA from 2019 or prior years." - NO
These steps were completed in the 2020 return.
