So, I am planning to do a backdoor Roth IRA conversion this year and only recently realized I should have been keeping track of my nondeductible traditional IRA contribution.
I went back to my previous Turbotax returns and only see 8606 being generated for 1 year only - not sure why it wasn't generated for couple years when my MAGI is higher than the income limit for deductible traditional IRA (doesn't Turbotax track this automatically and generate a 8606 on your behalf? - I assume that was how I got 8660 for one year). However, now as of today, there is only the basis from that 1 year with the 8606 filed, and missing other basis for couple more years.
What are my options now?
- Option 1: Do I have to file 8606 separately for each year with nondeductible contribution? starting with the oldest year first going to the most recent one? Only then can I do a backdoor conversion?
- Option 2: Can I just amen the nondeductible basis on this year 2022 return and put in the explanation in the box Turboxtax has to explain why there is a discrepancy?
- Option 3: Or do I just amend the latest 2021 tax return?
Would love to hear all options and best way to do this.
I plan to rollover all my deductible 401k contribution (rolled over to this tIRA) back to my employer 401k + all pre-tax earnings of my nondeductible contribution first so that the only thing left in my tIRA before conversion is just the nondeductible basis.
