I contributed and then performed a backdoor Roth in Feb '18 for '17 tax year. My broker will not give a 1099. How do I report my '17 tax year backdoor Roth w/o a 1099?

[needhelp418]

I contributed to my traditional IRA in Feb 2018 for the 2017 tax year. I then perform a backdoor Roth conversion on that contribution in 2018 again for the 2017 tax year. I talked to my broker and they said no 1099 R will be issued for that contribution/distribution. But, instead a 1099 R will be issued in 2019 for the 2018 tax year that will document my 2017 tax year contribution/distribution. My question is how do I report this 2017 tax year backdoor Roth conversion without a 1099 R for the 2017 tax year?

[dmertz · Accepted solution]

Only your traditional IRA contribution for 2017 gets reported on your 2017 tax return.  The Roth conversion performed in 2018 must be reported on your 2018 tax return.  These are two separate transactions.  Your basis in nondeductible traditional IRA contributions will appear on line 14 of your 2017 Form 8606 will carry forward to line 2 of your 2018 Form 8606.

[russellpsi]

With doing the above process, i, 2019 when I file TurboTax 2018 return, I will start with a basis (ie of 5500) although the funds were only temporarily in IRA as it was shortly there After converted?

[dmertz]

With no previous basis in nondeductible traditional IRA contributions and a nondeductible traditional IRA contribution of $5,500 for 2017 made in 2018, line 14 of the 2017 Form 8606 should have $5,500 which will carry forward to line 2 of the 2018 Form 8606.

[chuckers]

I have this same question. Sorry to hijack. But when I file my 2017 tax returns I won't have a 1099-r from the tira distribution but I will document that I contributed to my tira. For my 2018 tax return I will receive the 1099-r for the distribution and that is where my 2017 and possibly 2018 conversions will be captured. Is this the correct thought process?

[russellpsi]

I have attached response that I received prior which was helpful.

1) You claim the the 2017 contribution made *in* 2018 *for* 2017 on your 2017 tax return as a non-deductible contribution. That will produce a 8606 form with carry forward basis  on line 14.

2) You claim the 2018 contribution next year on your 2018 tax return also as a non-deductible contribution that will go on line 1 of a new 2018 8606 form.  The 2017 carry over from 2017 will go on line to and the total of both on line 3.

3) You will get a 2018 1099-R reporting the distribution that you rolled to a Roth, assuming that it was the total of both contribution plus any earnings and the Traditional IRA ended up with zero value, the two non-deductible contributions would offset the contribution, leaving only any earnings as taxable income.

[russellpsi]

Credit response to macuser_22

[russellpsi]

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/3582070-backdoor-roth-ira-contribution">https://ttlc.intuit.com/qu...>

[fanfare]

what year it is for depends on what you told the financial institution. That is an important bit of information you give them when you deposit the funds before April 15th.

[james_tsai]

I am in the same situation - first time doing backdoor Roth (with post tax money).  Now 2019, I have 1099R now.  Filing 2018 return to cover two Roth conversion transactions happening in 2018.  Following the steps, but the 2017 $5500 became taxable in 2018's 1040 line 4. This is not correct, right?  Did I do something wrong in Turbo Tax?  Help!  Thanks!