Based on the information gathered from earlier posts, here are my assumptions:
- You had a prior Traditional IRA basis of $6500 from 2023
- You made a $7000 non-deductible contribution to your Traditional IRA for 2024
- The $7000 non-deductible contribution was converted to a Roth IRA, which was reported on Form 1099-R
If those assumptions are correct, then you do need to make some corrections to your return.
1 - As you go through the section reporting your $7000 non-deductible Traditional IRA contribution, the basis in the Traditional IRA as of December 31, 2023 should be $6500 if that is what your 2023 Form 8606 showed on line 14. Otherwise, if your 2023 Form 8606 line 14 does show the number you entered, then all is well with that section of your return.
2 - With regard to the two Form 1099-R that were imported, you should review the follow-up questions for each of these. For the first one showing the conversion of the Traditional IRA to the Roth IRA, pay close attention to the question that asks what you did with the money. You indicated that it was moved to another retirement account, but you did not select the box showing that it was 'a combination of rolling over, converting, or cashing out the money'. When you choose this option, you will then indicate the amount that was converted to the Roth IRA.
3 - For the Form 1099-R showing the distribution under $10, you did indicate that this amount was simply cashed out and not converted to the Roth IRA. The taxable portion of this distribution is calculated based on the information reported on Form 8606, which includes the December 31, 2024 value of all Traditional IRAs. You indicated this value to be zero, but you should double-check this since you also indicated that there is still basis in the Traditional IRAs. There cannot be basis in the account if the accounts have no ending balance.
@hirenkava
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