Roth IRA form 8606

Forum|Forum|3 years ago
February 14, 2023
5 replies
26 views

All,

Need some help on the Roth and backdoor Roth IRA!

I was stupid enough to make mistake twice in a row therefore there're two questions.

In 2020, when our income was below the Roth IRA threshold of 196,000, we put 6,000 each in our IRA account. But I realized today that I didn't fill the 8606 form. How do I resubmit it? Do I just send the from itself or need to redo the entire 2020 tax.

In 2021, we can no longer contribute Roth so we did the backdoor IRA. I accidentally put the incorrect amount on form 8606. How do I amend that? Do I need to do 8606x?

Thank you very much!

DavidD66

Level 15

You don't need to file a Form 8606 for a contribution to a Roth IRA. It's a good idea to enter the information in TurboTax in case you take a distribution before age 59 1/2 and need to know the amount of your contributions (basis).

If your backdoor Roth was a non-taxable event, then won't owe any additional tax. You can complete a new Form 8606 showing the revised information and file it with Form 1040-X. Your Form 1040-X won't show any changes to your return. Just indicate in the reason for amending your return is to submit a revised Form 8606. If you have traditional IRAs that caused a portion of your backdoor Roth to be taxable, then you're 1040-X will show changes and result in additional income tax being owed. This will be the case for your state return, if your state has a personal income tax.

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cardnexusAuthor

Level 2

Thanks DavidD66!

For FY2020, I put down 1,000 each on the 8606 form but later forgot to do the backdoor IRA. If I understand 8606 correctly, it will make my future earning on the 1,000 non-taxable if I reported it. Since I never deposit the 1,000, does it matter I file the amended form?

Please let me know.

Thanks again!