Backdoor Roth - 8606

[lookingfortaxhelp75839]

Hi!

My wife and I made contributions to IRA accounts to do a backdoor Roth conversion and are now a little uncertain of how to file it on our taxes.

I contributed $6000 to my traditional IRA in calendar year 2022. (I have a 5498 Traditional IRA document from Fidelity.) I rolled over all of the money in the account in calendar year 2023.

My wife contributed $6000 to her traditional IRA in calendar year 2023 for tax year 2022. (I think since it was in 2023 there is no 5498 Traditional IRA document for her.) She rolled over all of the money in the account in calendar year 2023 as well.

Our accountant told us that we didn't have to do anything last year (in 2023 when filing for 2022 taxes) since we didn't get the 1099-R. However, after looking online my understanding is that we should have filed a 8606 last year to note the contribution to the traditional IRA.

1. Is my understanding correct and we need to have filled out an 8606 last year? (For both me and my wife or just me?)

2. If yes, that means I need to amend my taxes for last year, correct? And it looks like from online also pay a $50 fee for failing to file the 8606 properly?

3. Do I need to adjust how I fill out my taxes at all this year or should I just follow the normal guidance described in this article for backdoor Roth? https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...

[DanaB27]

Yes, if you didn't file the 2022 Form 8606 then you will need to file it. You can file the 2022 Form 8606 by itself and and mail it to your designated IRS office. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form.

Yes, technically you can be fined $50 for failing to file the form on time, but the penalty can be waived if you have reasonable cause. Please see Relief for Reasonable Cause for additional information.

Yes, you can follow the Backdoor Roth IRA instructions. Your 2022 Form 8606 will have the basis on line 14 and this will have to be entered during the interview. Please see If your conversion contains contributions made in 2023 for 2022.