topic Re: filing 8606 in Get your taxes done using TurboTax

filing 8606

orovalleyaz — Sat, 13 Feb 2021 18:36:55 GMT

Hi,

I need to file form 8606 for 2018 and 2019. I am 55 year old. I converted $6500 from traditional IRA to roth IRA in 2018 and $7000 in 2019. It looks like that I have to pay tax for $500 because there was $500 limit difference between 2018 and 2019. I would like to know if this is true.

Thank you

Re: filing 8606

Critter-3 — Sat, 13 Feb 2021 18:43:40 GMT

Wait a second ... there are no limitations on how much you can CONVERT from a traditional to a ROTH IRA. The Limitations are on the CONTRIBUTIONS to the IRA and CONVERSIONS should never be listed as CONTRIBUTIONS. The form 8606 is ONLY used if you had non deductible contributions in the traditional IRA from prior year contributions. It works to make sure you don't have to pay taxes twice when making distributions or conversions. SO ... what did you do ?

Re: filing 8606

orovalleyaz — Sat, 13 Feb 2021 18:59:46 GMT

Hi,

Thank you for your answer. I did not have traditional IRA account nor converted any nonreducible contribution before 2019. I opened an account in Jan 2019 and made a nondeductible contribution of $6500 into the traditional IRA account for 2018 then converted to Roth IRA later. Then I made a nondeductible contribution of $7000 into the traditional IRA account for 2019 then converted to Roth IRA later. I thought I had to file form 8606 for 2018 and 2019 separately. So I entered 0 on line 2 in 2018 form 8606, and $6500 on line 2 in 2019 form 8606. But after the calculation, it seems I have to pay tax for the $500 difference of the limit between 2018 and 2019. So if the limit of 2018 had been $7000, I would not have to pay tax.