Summary of IRA and Roth Transactions (2024–2026) 1. 2024 Tax Year Activity In the 2024 tax year, I made non-deductible contributions to a Traditional IRA as part of a Backdoor Roth strategy. • The...
See more...
Summary of IRA and Roth Transactions (2024–2026) 1. 2024 Tax Year Activity In the 2024 tax year, I made non-deductible contributions to a Traditional IRA as part of a Backdoor Roth strategy. • The basis was reported on Form 8606 in the 2024 tax return. • The line #14 in 2024 tax year’s 8606 = 7001. The IRA Information Worksheet Line 7 showed: Person 2024 Basis Taxpayer 12,000 Spouse 12,000 These amounts represent cumulative nondeductible IRA basis carried forward into the next tax year. 2. 2025 Tax Year Activity Received Form 1099-R issued in 2026 for the 2025 tax return that is for the backdoor completed in 2024, and reported in 2024 via 8606. Also, a direct Roth IRA contribution of $7,000 each was made for: Person Contribution Taxpayer $7,000 Spouse $7,000 These contributions appear correctly in the Roth IRA Contributions Worksheet with: • Total Roth contributions: $7,000 each The IRA Information Worksheet Line 6 in the 2025 return shows: +7000 from what was there in 2024. This is correct. The IRA Information Worksheet Line 7 in the 2025 return shows: Person 2025 Basis Taxpayer +14,000 over what was in 2024 Spouse +14,000 over what was in 2024 This is not correct. The ROTH IRA conversion basis should be +7000 over what is in 2024 instead of +14000. What could be making this inflated.