I exceeded the income limits for a Roth IRA in 2016, so in January 2017 I recharacterized those contributions into a Traditional IRA. Do I file Form 8606 now with my 2016 taxes or later with my 2017 taxes?

[DanaB27]

Yes, thank you. You will have to enter the $7,000 nondeductible contribution for 2020 on your 2020 amended return for your wife. Your wife will have a 2020 Form 8606 with $7,000 basis on line 14 to enter in the 2021 tax return.

You will enter the $7,000 nondeductible contribution for 2021 on your 2021 tax return for your wife. And add the basis from 2020 during the interview when TurboTax asks for prior nondeductible contributions.

You will enter her Form 1099-R with code 2 for the conversion during the retirement interview.

@mbPB1921

[mbPB1921]

Sorry about all of this.

Now it is telling me that my wife needed to take a required minimum amount of money from any qualified employer plans.  An RMD.  Asking to select 1 of the following.

Received all the RMD for 2021

Did not receive all the RMD for 2021

Was not required to take an RMD for 2021.

[mbPB1921]

My wife does have an Annuity & Life Insurance from her father that passed away several years ago.  This information came from 1099-R that we entered.  Not sure if this has anything to do with the RMD.

Mark

[DanaB27]

You are only required to take RMDs if  you reach age 70½, if you were born before July 1, 1949 or you reach age 72, if you were born  after Jun 30, 1949.

It seems this applies to the distribution from the father's annuity. If you took the RMD from the annuity then you can select "Received all RMD for 2021".

@mbPB1921

[mbPB1921]

Thanks for all the help when I was doing my taxes!

I do have a related question.  One issue my wife and I had was with our W2 forms we received from our work.  We got married in Nov 2020 and I forgot to switch my W4 forms for work over to married, filling jointly.  When I entered my W2, I had a refund (because I was still indicating single.  My wife she changer her at her work place to married filling jointly and when we added her W2, we went from a refund to owing a lot in taxes.  I just want to make sure both of us are having our place of work take out as much as possible so I do not have to pay it later.

[NCperson]

@mbPB1921 - there is no issue leaving your W-4's (one or both of you) indicating 'single'; it just means more is withheld and there is an increased likelihood of a refund comes April.   You are not violating any rules by over withholding in this manner.