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spookyGhost
New Member

"Tell us the value of your Traditional IRA" when the full amount was converted to Roth IRA.

I carried forward a 5500 basis on my traditional IRA from 2016. I again contributed 5500 to non-deductible IRA in 2017 and then converted the 11000 to Roth IRA prior to December 31st, 2017. This is reflected through a 2017 1099-R.

When I get to questions on basis and "Tell Us the Value of Your Traditional IRA". It asks for the value of my IRA on December 31, 2017 (which was technically 0, due to the conversion to Roth). Is that what I enter here? There is also field for "Outstanding Rollovers" but it doesn't have much detail. I don't believe the rollover is outstanding.

Since I converted to Roth IRA, do I no longer carry any basis forward? What should I expect to see on my 8606 for 2017?

1 Best answer

Accepted Solutions
dmertz
Level 15

"Tell us the value of your Traditional IRA" when the full amount was converted to Roth IRA.

If you had no money in a traditional IRA on December 31, 2017, that's what you tell TurboTax.

An outstanding rollover is a distribution that you received before year-end but you rolled back into a traditional IRA after year-end, within 60 days of the distribution.

If you had a zero traditional IRA balance on December 31, 2017, your basis carried forward to 2018 is zero.  You should see a zero on line 14 of your 2017 Form 8606.

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3 Replies
dmertz
Level 15

"Tell us the value of your Traditional IRA" when the full amount was converted to Roth IRA.

If you had no money in a traditional IRA on December 31, 2017, that's what you tell TurboTax.

An outstanding rollover is a distribution that you received before year-end but you rolled back into a traditional IRA after year-end, within 60 days of the distribution.

If you had a zero traditional IRA balance on December 31, 2017, your basis carried forward to 2018 is zero.  You should see a zero on line 14 of your 2017 Form 8606.

Wondering1231
New Member

"Tell us the value of your Traditional IRA" when the full amount was converted to Roth IRA.

Would the answer be the same for a contribution made between Jan 1 & April 15 2018, then converted into Roth before April 15 2018?  Thanks in advance!
dmertz
Level 15

"Tell us the value of your Traditional IRA" when the full amount was converted to Roth IRA.

No, the answer would not be the same.  With the Roth conversion performed in 2018, the basis from a contribution for 2017 would carry forward from line 14 of your 2017 Form 8606 to line 2 of your 2018 Form 8606 2 to be applied in calculating the taxable amount of this Roth conversion that you will report on your 2018 tax return.
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