Thank you for all the detail @DanaB27 !
Though this got me thinking and wondering if I messed up my tax return last year for 2022. Looking at just my wife's IRA:
- 1/1/2022 - 12/31/2022: Contributed $6,000 to Roth IRA
- 3/17/2023: Removed $4,324 excess + losses from Roth IRA ($4,510 excess - $186 losses = $4,324)
- 3/31/2023: Contributed $4,510 to Traditional IRA (nondeductible)
- 4/14/2023: Converted $4,518 from Traditional IRA to Roth IRA ($4,510 contribution + $8 gains = $4,518)
- 1/1/2023 - 12/31/2023: Contributed $6,500 to Roth IRA
As far as I understand, the conversion from 4/14/2023 should be included on the tax return for the calendar year it occurred (i.e. 2023, not 2022). The excess return from 3/17/2023 generated a 1099-R form this year to amend the 2022 tax return, but since there were losses there is really nothing to amend. Where or when was I supposed to include the nondeductible Traditional IRA contribution from 3/31/2023 on a tax return? My return from 2022 doesn't have Form 8606, so I'm guessing it wasn't included there, but should it have been? I'm wondering if I entered the wrong data somewhere and just assumed it was OK since it was supposed to be nondeductible and not impacting the tax return. If it should have been on the 2022 return, can I amend that now?
