Where to report my IRA contribution and am i eligible for dudcted the amount if i made 220k in 2018!cal I convert trad ira to ROth ira?

Forum|Forum|7 years ago
June 4, 2019
1 reply
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I'm making 220k in 2018 and I want to contribute to try IRA! is this contribution deductible ?

Can I convert it to ROTH IRA back door ROth ira? How long I have to do so for 2018?

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macuser_22

Alumni - Champ

1) A Traditional IRA deduction is not limited by income unless you are covered by a retirement plan at work (usually indicated by box 13 on your W-2). If you are so covered then yiu can still make a non-deductible contribution.

https://www.irs.gov/Retirement-Plans/IRA-Deduction-Limits

2) A 2019 "Backdoor Roth" only works if your total 2019 year end value of all existing Traditional, SEP and SIMPLE IRA accounts that might exist is zero, otherwise any non-deductible basis must be prorated over the entire ending value and only a portion of the conversion would not be taxable.

3) You had until December 31, 2018 to do a 2018 Roth conversion. Any conversion in 2019 is a 2019 conversion reported next year in 2020.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

macuser_22

Alumni - Champ

It is automatic.

It is automatically created when:

1) You make a new non-deductible Traditional IRA contribution.
2) You take a distribution from a IRA that has a after-tax "basis".
3) You make a conversion of a retirement account to a Roth IRA

If none of those occurred, then the last filed 8606 remains in effect

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**