In Feb '16 I invested $11K (nondeductible) into a Trad IRA ($5.5 for '15 and $5.5 for '16) a few days later is was sold and rolled over to a ROTH IRA. How do I report?

dkgoreyiii · ‎June 6, 2019

In Feb 2016 I invested $11K (nondeductible, $5.5K for 2015 and $5.5K for 2016) in to a traditional IRA and converted (rollover) it over to a ROTH IRA a few days later. My questions are:

1.) On my 2015 taxes I thought it was a straight ROTH Purchase and that is how I declare it. I assume I need to amend my 2015 taxes to show the conversion or show it as a purchase of a nondeductible Traditional IRA?

2.) The $5.5K for 2015 that was purchased in Feb 2016. Which tax year does the conversion go against (Trad to ROTH)?

dmertz · ‎June 6, 2019

1) You must amend your 2015 tax return to show a $5,500 nondeductible traditional IRA contribution and no Roth conversion (unless there was some other Roth conversion that did occur in 2016). TurboTax will prepare an amended Form 8606 showing on line 14 the basis that carries forward to your 2016 Form 8606 line 2.

2) The distribution from the traditional IRA that funded the Roth conversion occurred in 2016, so it must be reported on your 2016 tax return. You should have received a code 2 2016 Form 1099-R for this if you were under age 59½ and the conversion was handled by your traditional IRA custodian.

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In Feb '16 I invested $11K (nondeductible) into a Trad IRA ($5.5 for '15 and $5.5 for '16) a few days later is was sold and rolled over to a ROTH IRA. How do I report?

Retirement tax questions