IRA Rollover/Conversion question

[themaster]

Hi,

I have a question regarding an activity that took place in 2020:

I opened an IRA Trad in Feb 2020 and made 2019 contributions (various amounts) totaling $995.  I then changed my mind and wanted a ROTH IRA instead so I "converted" to a Roth IRA with the same custodian/brokage (Wealthfront). 

FYI when I completed my 2019 Tax I did not deduct any contributions

I opened my Roth in May 2020 (the prev account was closed and funds withdrawn and used to fund the Roth).

I made 2019 contributions to the Roth totaling $945. Made 2020 contributions totaling $561.00 in the year 2020 (still contributing for 2020).

Now, Wealthfront gave me a 1099R for the IRA traditional with box 1 and box 2 $923.60, taxable amount not determined box checked, distribution code 2 and IRA/SEP/SIMPLE box checked.

How do I add this to my turbotax? I thought the code should be G but they suggested doing nondeductible contributions, what is that exactly and how does that apply?

Thanks in advance for the help.

[dmertz]

What you did was make a traditional IRA contribution of $995 for 2019, reportable as such on your 2019 tax return.  Apparently the value of your investments dropped, since you then did a Roth conversion reportable on your 2020 tax return of $923.60.

If nondeductible, the traditional IRA contribution was required to have been reported on line 1 of your 2019 Form 8606, line 14 of which carries forward to line 2 of your 2020 Form 8606.  If the traditional contribution was deductible, it was required to be on 2019 Schedule 1 line 19.

Code 2 is correct on the 2020 Form 1099-R.

The $945 contribution for 2019 was a separate Roth IRA contribution for 2019.