Conversion of deductible IRA to Roth

Forum|Forum|5 years ago
March 28, 2021
1 reply
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Hi,

I have the following activity for my Traditional and Roth IRA.

11 April 2019- contributed 5500 to 'DEDUCTIBLE' IRA for 2018

24Feb 2020 -Converted 5591 (500 + earnings) to Roth

25 Feb 20 - contributed 6000 to 2019 'NON' DEDUCTIBLE IRA

25 Feb 20- contributed 6000 to 2020 'NON' DEDUCTIBLE IRA

26 Feb 2020 - converted 12000 to ROTH IRA

I am above income limits for Roth IRS so i did a backdoor.

I received a 1099-R at the end of 2020 and it shows the 17592 conversion with distribution code 02. I uploaded it in Turbo tax and have the following results in 8606:

Line 1- 6000 (probably for 2020 IRA contribution non deductible)

Line 2- 6000 - for 2019 non deductible IRA (which was converted to Roth)

Line 8- blank (even though i converted from T IRA to Roth)- is this right?

Line 13- 12000

Line 14- 0 - is this right

Line 16- 17592

Line 17- 12000

Line 18- 5592 - makes my deductible IRA conversion taxable which seems right.

Question- should it not show 6000 in Line 8 since I converted in 2020?

In my 2019 form, it did not show Line 4- contribution made between Jan 2020 and Apr 2020. I did enter this amount in the turbo tax questionnaire. Here is my 2019 form detail:

Line 1- 6000 -for the non deductible contribution

Line 2- 0 - should it not show my 5500 deductible IRA contribution here?

Line 14- 6000 - is this right?

Thanks,

macuser_22

Alumni - Champ

@goyal_raj wrote:

Question- should it not show 6000 in Line 8 since I converted in 2020?

In my 2019 form, it did not show Line 4- contribution made between Jan 2020 and Apr 2020. I did enter this amount in the turbo tax questionnaire. Here is my 2019 form detail:

Line 1- 6000 -for the non deductible contribution

Line 2- 0 - should it not show my 5500 deductible IRA contribution here?

Line 14- 6000 - is this right?

Thanks,

Looks right.

There is probably a * next to line 15 that means the calculations were done on the "Taxable IRA Distribution Worksheet" per IRS instructions for worksheet 1-1 in Publication 590-B. The conversion amount would be on line 6 on the worksheet.

https://www.irs.gov/publications/p590b

The 2019 8606 line 4 should be blank per the 8606 instructions after line 3 - if no 2019 distribution, go directly from line 3 to line 14.

Line 2 would be blank - deductible contributions do not go on the 8606.

**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.**

goyal_rajAuthor

Level 5

Thanks macuser_22. So it is all good then.

How would i get a basis of 17592 for my Roth? which form would show it and when?

Thanks,

macuser_22

Alumni - Champ

@goyal_raj wrote:

Thanks macuser_22. So it is all good then.

How would i get a basis of 17592 for my Roth? which form would show it and when?

Thanks,

It not a "basis" it is the amount you said you converted to a Roth.

The 1099-R box 1.

That is what your question said:

"24Feb 2020 -Converted 5591 (500 + earnings) to Roth"

"26 Feb 2020 - converted 12000 to ROTH IRA"

= $17,591 (I assume if rounded up to 17,592).

**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.**