How to find the cost basis on 8606

[tianwaifeixian]

I contributed after-tax $6000 to a traditional IRA in 2021 and uncharacterized all $6000 to Roth. To answer the question on TT: If you did make any nondeductible contributions, look at your most recent form 8606. Find the box called total basis and enter the number from that box below. 

Should I look at form 8606 line 14 for this question?

Thanks!

[DanaB27]

Yes, you will enter your basis from your 2021 Form 8606 line 14 when TurboTax asks about your basis in prior years.

Please verify that you requested a conversion to Roth IRA and not a recharacterization (code R or N on Form 1099-R).

[tianwaifeixian]

I did enter the number on line 14 to the TT but got the following message. Do you know why?

Also, I don't see code R or N on my 1099 R.  It shows 02 in box 7. Is that correct?

[DanaB27]

Yes, code 2 is correct for the conversion.

It seems that TurboTax carried over a different basis. To confirm you made the nondeductible contribution for 2021 and reported this on your 2021 tax return. You didn't convert the funds to Roth IRA the amount in 2021? Therefore, you had a $6,000 basis on your 2021 line 14.

@tianwaifeixian 

[tianwaifeixian]

I did the same thing last year- contributed $6000 to Traditional IRA and then converted to Roth IRA- it is reflected on the 8606 as well.

[DanaB27]

If you made the contribution for 2021 in 2021 and converted the full amount in 2021 then your basis should be $0 on line 14 of your 2021 Form 8606 (assuming the account was empty before the 2021 contribution).