Filing Backdoor Roth First time (2019-2021)

[hdaniel1]

I'll try and make this as succinct as possible.

1) I created a traditional IRA in July 2020 (before the filing date) and contributed the max amount (6000) to my 2019 IRA.

2) I then contributed the max amounts (6000) for both 2020 + 2021 in January of 2021 to this traditional IRA.

3) I then converted everything in this trad IRA to a roth (18000) the same month (Jan 2021).

So now I have a 1099-R for 2021 and need to report the conversion on my taxes. I do NOT have an 8606 for 2019 it looks like, but I do for 2020 (6000 basis). 

I tried following the instructions here but need some clarifications:

1) I am not getting to step 8 in the 1st part of the instructions. Instead, after I indicate on the page "Any Nondeductible Contributions to Your IRA?" > YES and enter my 2020 basis of $6,000.00, it says "Your Income Is Too High to Contribute" and takes me to a penalty page.

It is not taking me to the page where I can indicate the following: "Choose Not to Deduct IRA Contributions. Select Yes, make part of my IRA contribution nondeductible"

2) Do I need to fill out the 8606 for 2019? I assume yes and have to mail that in. That's fine, just want to clarify.

I've finished importing my 1099-R for the 2nd part of the instructions and indicated the full amount (18000) was converted. I just want to make sure I did the first part right since it wasn't exactly 1:1 for what it indicated (and also want clarification on the 8606 for 2019).

Thanks!

[DanaB27]

1) If you have a retirement plan at work and are over the income limit your traditional IRA contribution will be nondeductible automatically and you only get a warning. If all of it is made nondeductible then you will get a screen saying $0 is deductible. You are done with entering your nondeductible contribution.

2) Yes, you will need to file a 2019 Form 8606 and correct your 2020 Form 8606 if you don't have a basis of $12,000 listed on line 14 ( the $6,000 basis from 2019 should be on line 2).

On your 2021 Form 8606 you should have $12,000 listed on line 2 from your 2020 Form 0606 line 14.

[hdaniel1]

Thanks! So when it asks for my total basis in Deductions and Credits on the "Let's find your basis" page, would it be 6,000 or 12,000? It is asking for the basis as of 12/31/2020, so I assume it's 6,000 based on my dates, just want to make sure it shouldn't include my 2020 contribution as well.

[DanaB27]

Your basis on December 31, 2020, should be $12,000 from line 14 of your 2020 Form 8606. A contribution made in 2021 for 2020 is deemed to have been made on the last day of 2020.

@hdaniel1