You can check your form to see if one is marked corrected and/or check with your financial advisor.
This may be a Backdoor Roth.
A backdoor Roth IRA allows you to get around income limits by converting a traditional IRA into a Roth IRA. Contributing directly to a Roth IRA is restricted if your income is beyond certain limits, but there are no income limits for conversions.
You’ll receive a Form 1099-R with code 2 in box 7 (or code 7 if you’re over 59 ½) in the year you make your Roth conversion. You should report your conversion for the year you receive this 1099-R:
- If you received this form in 2021, complete both steps below to report it on your 2021 taxes
- If you'll receive this form in 2022, wait to report it on your 2022 taxes. In this case, only complete Step 1 below for your 2021 taxes. You’ll complete both steps next year when filing your taxes for 2022
Doing a backdoor Roth conversion is a two-step process.
[Edited 4/16/2022|6:07 AM PST]
