Filing 8606 first time for 2020 & 2019

Forum|Forum|5 years ago
February 16, 2021
1 reply
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I am filing 1099R for the first, I started contributing to Traditional IRA in 2020, towards contribution limits of 2019 ($6000) and 2020 ($6000) together, before the end of year I backdoor all of it along with gains to Roth IRA. So my "Total Basis as of December 31'2019" should be "$6000" ? And value of Traditional IRA as of "December 31, 2020" should be 0 ?. I did not find any existing questions for this.

Thanks in advance

TurboTax Deluxe Online

Best answer by DanaB27

Yes, your "Total Basis as of December 31'2019" should be "$6,000" and the value of Traditional IRA as of "December 31, 2020" should be $0.

Please see the instructions how to enter a backdoor Roth for additional information. Please ensure you entered your nondeductible contribution on your 2019 return as well (this will create Form 8606).

To enter the nondeductible contribution to the traditional IRA (2020 tax return):

Login to your TurboTax Account
Click on the Search box on the top and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the amount you contributed ($6,000)
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
If you had a basis in the Traditional IRA before then enter the amount ($6,000 from 2019).
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion:

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
On the "Your 1099-R Entries" screen click "continue"
Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
Answer the questions about the basis

DanaB27Answer

Level 15

Yes, your "Total Basis as of December 31'2019" should be "$6,000" and the value of Traditional IRA as of "December 31, 2020" should be $0.

To enter the nondeductible contribution to the traditional IRA (2020 tax return):

Login to your TurboTax Account
Click on the Search box on the top and type “IRA contributions”
Click on “Jump to IRA contributions"
Select “traditional IRA”
Answer “No” to “Is This a Repayment of a Retirement Distribution?”
Enter the amount you contributed ($6,000)
Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
If you had a basis in the Traditional IRA before then enter the amount ($6,000 from 2019).
On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion:

Login to your TurboTax Account
Click on the Search box on the top and type “1099-R”
Click on “Jump to 1099-R”
Click "Continue" and enter the information from your 1099-R
Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
On the "Your 1099-R Entries" screen click "continue"
Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
Answer the questions about the basis