- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
@fermin1952 wrote:
so based on my example numbers below from my original post
***********
I have made non deductible contributions to a Traditional IRA for years prior to 2019 (basis as of 12/31/2018 = $7200), and have never made deductible contributions to the Traditional IRA.
In 2019 I converted 7200 from the Traditional IRA ( I only have 1 Traditional IRA) to my Roth IRA and also, for tax year 2019, I am making a non deductible contribution of $6000 to the Traditional IRA in March of 2020.
After the 2019 $7200 withdrawal for the conversion and prior to the $6000 2019 (in 2020) contribution, the Fair Market Value as of 12/31/2019 was $5035 due to stock gains in the account.
In filling the Taxable IRA Distribution worksheet line 4, should I enter:
a - $5035
or
b - $5035 + 6000 (2019 contribution in 2020) = $11035
*****
would the answer be a - $5035 or b - $11035?
The 2019 year end balance can not include what was not in the account until 2020. What does the financial institution report on the year end statement? That is what they will report to the IRS on a 5498 form and that is what the IRS goes by.