Should I have received a 1099R if I did a IRA to ROTH IRA backdoor conversion in January/2021, for tax year 2020?

[rlarcher]

On January 15  2021, I did a non-deductible contribution to a traditional IRA ($6k) and, on the same day, requested the broker to do a ROTH IRA backdoor conversion on that full amount ($6k).

Should I have received the form 1099-R for tax year 2020 from my broker?

[DanaB27 · Accepted solution]

No, you will get the 1099-R 2021 in 2022 and it will be included on your 2021 tax return since the conversion took place in 2021.

Please make sure to enter the nondeductible contribution to the traditional IRA if the contribution on January 15,2021 was for the tax year 2020:

1. Login to your TurboTax Account 
2. Click on the Search box on the top and type “IRA contributions”
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
9. If you had a basis in the Traditional IRA before then enter the amount.
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

[keithp1]

I understand that I don't account for the conversion in my 2020 taxes since I made my 2020 contribution and conversion in 2021 and did not receive a 1099r.  How is this affect my "basis" and how will it be addressed next year?

[DanaB27]

You will enter you contribution as mentioned above in your 2020 tax return and get Form 8606 to report your basis.

In 2021 when you get your 1099-R you will enter the conversion like this (pay special attention to steps 7 and 8):

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Click "Continue" and enter the information from your 1099-R
5. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
6. On the "Your 1099-R Entries" screen click "continue"
7. Answer "yes" to "Any nondeductible Contributions to your IRA?" since you had a nondeductible contributions in prior years.
8. Answer the questions about the basis and value