There are various similar posts to this and I feel I've done the math and work correctly but I want to make sure 100%.
I contributed $6,000 into a Roth IRA in Feb 2022. In Jan 2023, I realized my income was too high. I rechar $5,XXX to a traditional IRA. A few days later, I backdoor converted to a Roth IRA $5,XXX. In February 2023, contributed $6,500 to a traditional IRA and correctly did a backdoor conversion of that to a Roth IRA a few days later.
My 8606 for 2022 was filed quite wrong I think.
I am planning to file an amendment of my 2022 8606 form as such (after reading many posts I think I have this right):
1. $6,000
2. $0.00
3. $6,000
14. $6,000
17 and 18 BLANK as I did not do the conversion in 2023.
I will file a 1040 along with an explanation of the recharacterization in addition for 2022.
After my 2023 conversion, I still have $.76 in my traditional IRA account. That will count for the additional $1 in some answers below.
I would then file my 2023 8606 as such:
1. $6,500
2. $6,000
3. $12,500
5. $12,500
8. $12,501
9. $12,501
10. x 0.999
11. $12,500
13. $12,500
14. $0.00
17. $12,501
18. $12,500
19. $1
After some additional reading, I may remove the $1 from those answers and convert that $1 next year when I contribute again. Let me know what you think and if I'm correct. Appreciate any and all help.
What you listed correctly describes what should be appearing on your 2022 Form 8606.
Note that when you recharacterized your 2022 Roth IRA contribution you recharacterized $6,000, not $5,xxx. $5,xxx was the amount transferred, not the amount recharacterized.
With $0.76 in traditional IRAs on December 31, 2023 you should have $1 on line 6 which will cause slight changes to what you posted for lines after line 6. Line 8 would have only $12,500 if your February conversion was only $6,500.
What you listed correctly describes what should be appearing on your 2022 Form 8606.
Note that when you recharacterized your 2022 Roth IRA contribution you recharacterized $6,000, not $5,xxx. $5,xxx was the amount transferred, not the amount recharacterized.
With $0.76 in traditional IRAs on December 31, 2023 you should have $1 on line 6 which will cause slight changes to what you posted for lines after line 6. Line 8 would have only $12,500 if your February conversion was only $6,500.
Thank you for the swift reply! It is much appreciated.
I have a couple of questions remaining. Line #2 would stay $6,000 because that it what I previously contributed versus $6,001 after the gains this year. Also, line 4 would stay $0 correct? I am confused because I did the rechar / back door conversion for 2022 in the time frame of Jan 1, 2023 - Apr 15, 2023.
Here is what I have come to now:
1. $6,500
2. $6,000
3. $12,500
4. $0
5. $12,500
6. $1.00
8. $12,500
9. $12,501
10. x 0.999
11. $12,500
13. $12,500
14. $0.00
17. $12,500
18. $12,500
19. $0.00
My overall confusion now lies with the outstanding $1.00 in the tIRA. Do I need to pay tax on that with a separate form? I know in the future I can just convert all of the earnings but I am too late this year with the market closed until Tuesday. Thanks again!
There is no tax on anything that remains in the traditional IRA until it is distributed from the traditional IRA. When you make a traditional IRA contribution for 2024 and subsequently convert everything in 2024, it will be included on your 2024 Form 8606 as part of your Roth conversion.