Hi, I am doing my 2024 tax return. The system is asking me to confirm net conversions to my Roth IRA that were taxable and nontaxable in 2021.
Basically, I deposited 6000*2 into my traditional IRA account between Jan-April 2021, using the quote of both tax year 2020 and 2021. Then I converted $12000 to Roth IRA in 2021.
I did the same thing for 2022 and 2024. I deposited 6000+6500 into my traditional IRA account between Jan-April 2023, using the quote of both tax year 2022 and 2023. Then I converted $12500 to Roth IRA in 2023.
Are these conversion taxable or nontaxable? Does error result from any error from my 2023 return? What's the impact of the error? Anything I should do to correct my previous return?
The 2021 conversion should be nontaxable since you converted the nondeductible contributions from 2020 and 2021. You can check your 2021 return line 4b to make sure it was nontaxable.
If your 2021 return shows it as taxable, you want to review your 2021 Form 8606.
If it shows as nontaxable then you can correct the entry in TurboTax in your 2024 return and enter the 2021 as nontaxable.
If you didn't take any distributions from your Roth IRA then this error won't affect you.
The 2021 conversion should be nontaxable since you converted the nondeductible contributions from 2020 and 2021. You can check your 2021 return line 4b to make sure it was nontaxable.
If your 2021 return shows it as taxable, you want to review your 2021 Form 8606.
If it shows as nontaxable then you can correct the entry in TurboTax in your 2024 return and enter the 2021 as nontaxable.
If you didn't take any distributions from your Roth IRA then this error won't affect you.