topic IRA basis during Backdoor IRA conversion question in Get your taxes done using TurboTax

IRA basis during Backdoor IRA conversion question

wraphale — Mon, 22 Jun 2020 01:14:24 GMT

I've gone through the FinanceBuff article and followed the steps to the T but the numbers are not adding up - https://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html

This table described what happened in 2019.

	Traditional IRA ending balance as of dec 31 2018	Traditional IRA account on (mar 31 2019)	current year contribution to Traditional IRA (4/12/19)	Conversion to Roth IRA (4/12/19)	Taxable amount	Traditional IRA Balance as of 12/31/19
Me	11,164.21	12,396.14	6000
			18,396.14	18,647.93	251.79	0

		Traditional IRA account on (mar 31 2019)	current year contribution toTraditional IRA (4/15/19)	Conversion to Roth IRA (5/06/19)	Taxable amount	Traditional IRA Balance as of 12/31/19
My spouse	6282.32	6978.42	6000
			12978.42	13173.6	195.18	0

In the step 'Let's find your IRA basis', for the question - 'Total basis as of Dec 31, 2018', I entered "$11,164.21". It says the IRA basis we transferred from 2019 is different from the basis entered. Include an explanation.

My 2018's Form 8606, item #14 (Total basis) says $5500.

I'm not sure what to do now. Is my IRA basis $5500 or $11,164.21?

Help please - @macuser_22, @AnnetteB6

Re: IRA basis during Backdoor IRA conversion question

macuser_22 — Mon, 22 Jun 2020 01:36:45 GMT

It sound like you failed to enter your 2019 non-deductible contribution so it is not on the 8606 line 1 to be added to the 2018 carry over in line 2 so the total is on line 3. If your 2018 line 14 was $5,500 and a $6,000 2019 contribution the line 3 should be $11,500.

Enter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.

Re: IRA basis during Backdoor IRA conversion question

fanfare — Mon, 22 Jun 2020 01:43:13 GMT

print and study form 8606. you will see what has to be done.

If not obvious you may have to refer to the instructions for 8606

Note: you haven't done a true backdoor Roth unless your starting and ending traditional IRA balances are zero.