I made 6000$ nondeductible Traditional IRA contribution for 2021 at Feb 2021, and converted to Roth immediately at the same month. The initial value of my Traditional IRA was 0. Now I am filling out turbotax, in the tab "Tell Us the value of your traditional IRA", what should I put for outstanding recharacterization? Should it be 0 or 6000? Thanks!
You'll need to sign in or create an account to connect with an expert.
$0.
You did no recharacterization, you did a Roth conversion.
Thanks dmertz, one more follow up question, If I contribute nondeductible money to traditional IRA and convert to roth each year, my IRA basis (line 2 from form 8606) should be increasing each year right? For example: this year my basis is 12000$, and I contributed 6000$ after tax money, so the following year, my basis should be 18000$ right?
No, line 2 will be zero every year. Line 2 of a Form 8606 comes from line 14 of the previously filed Form 8606 which will be zero because the Roth conversion consumes the basis.
Got it, thanks!
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
NMyers
Level 1
Darenl
Level 3
wresnick
New Member
TomDx
Level 2
taxn00b123
Level 2