I have same question. before 2016,I made nondeductible traditional IRA 4 years total $16000. I kept Form 8606. Last year I made a conversion to roth IRA. I follow the step i was seen in AnswerXchange "A Backdoor ROTH conversion consists of two parts" send part.--The non-taxable distribution. But I still need pay tax! How can I think that? because after I finished get,I need oay tax, for example, $6600. But if I delete my 1099R form which include $16000, I need pay 2872. So I think I still pay tax for my non-taxable distribution.
The non-deductible contributions cannot
be converted in isolation from any other existing traditional and rollover
IRA(s). It's best explained by example. Let's say you have a $10,000 balance in
all your existing traditional IRAs and that balance consist of $3,000 in
deductible contributions, $2,000 in previous non-deductible contributions and
$5,000 in earnings (interest, dividends & capital gains). Your basis, in
all your IRAs, is $2,000. This year you convert $5000 to a Roth. Only 20% of the $5000
conversion ($1000) will be tax free . TurboTax will divide that $2,000 basis by
the $10,000 balance to arrive at the 20%
tax free ratio. $4,000 of the conversion will be taxable. This is the way the IRS requires it to be done. The
calculations will be shown on form 8606.
The non-deductible contributions cannot
be converted in isolation from any other existing traditional and rollover
IRA(s). It's best explained by example. Let's say you have a $10,000 balance in
all your existing traditional IRAs and that balance consist of $3,000 in
deductible contributions, $2,000 in previous non-deductible contributions and
$5,000 in earnings (interest, dividends & capital gains). Your basis, in
all your IRAs, is $2,000. This year you convert $5000 to a Roth. Only 20% of the $5000
conversion ($1000) will be tax free . TurboTax will divide that $2,000 basis by
the $10,000 balance to arrive at the 20%
tax free ratio. $4,000 of the conversion will be taxable. This is the way the IRS requires it to be done. The
calculations will be shown on form 8606.
Can I not attach form 1099R to my return. Because the comment in 1099R? If this form shows federal income tax withheld inbox 4, attach this copy to your return. My 1099R box 4 is nothing.