“If that contribution was nondeductible, your 2020 tax return should have included Form 8606 reporting that nondeductible contribution and would have resulted in basis shown on line 14 that would carry forward to line 2 of your 2021 Form 8606 to be used in calculating the taxable amount of any Roth conversions that you did in 2021”
- so even though this recharacterization gets converted back to Roth and creates a basis moving forward to year 2021from 2020, I would get taxes on this amount plus gains, or just the gains?
- also, if I contributed nondeductible in 2021 for year 2020 straight to my traditional, does one pay taxes on these contributions similar to recharacterizations?
- Does contributing in year 2021 for year 2020 nondeductible into traditional also create a basis similar to recharacteizations?
thankyou!
