@vikasahuja wrote:
What if the Balance as per Form 5498 is not zero? In my case, I converted $633 prior to 12/31/2019 and rest of $5367 was converted on Jan 1, 2020. The total amount contributed was $6000 for 2019 as non deductible IRA from post tax dollars. How do I make Turbo Tax keep my $633 contribution to IRA (and then conversion) as non taxable? If I make my balance at the end of the year to $0 when asked by Turbo Tax, it becomes non taxable otherwise, it becomes taxable.
The 5498 is for information only. You are asking about two different tax years.
For the 2019 conversion, you should have a 2019 1099-R reporting that. If you had non-deductible "basis" prior to 2020 then that can be applied to reduce the 2019 tax. The year end value is for ALL Traditional IRA accounts that you had then and you get that from the 2019 year end statements from the financial institutions holding the IRA accounts.
Any amount converted in 2020 will be reported next year on a 2020 1099-R and you report it the same way, using the 2020 year end value. Any new non-deductible contribution made *in* 2020 (whether it was for 2020 or 2019) would be applied to the 2020 conversion.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
