2022 Tax Year - Roth IRA Conversion, should I not upload my 1099 files?

[jerrylshen]

You’ll receive a Form 1099-R with code 2 in box 7 (or code 7 if your age is over 59 ½) in the year you make your Roth conversion. You should report your conversion for the year you receive this 1099-R:

• If you received this form in 2022, complete both steps below to report it on your 2022 taxes
• If you'll receive this form in 2023, wait to report it on your 2023 taxes. In this case, only complete Step 1 below for your 2022 taxes. You’ll complete both steps next year when filing your taxes for 2023

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...

Background:

I contributed to my Roth IRA, but I had a change in income in 2022, so I withdrew it. Contributed to my traditional IRA, and did the Roth conversion in Sep 2022. I received the Fidelity 1099-R files in 2023.

Based on the above link, I should not upload any of these files and only fill out Step 1: Enter the Non-Deductible Contribution to a Traditional IRA section. I just want a confirmation if this is actually what it is saying?

Product is TurboTax Premier Windows

Thanks

[NCperson · Accepted solution]

@jerrylshen 

in what year did you do the contribution to the IRA? 

in what year did you withdraw it?  if you withdrew it in 2022, it must be reported.  if you withdrew it in 2023, wait until you file your 2023 tax return to file it.

I think the instuctions are confusing.  if the 1099-R states '2022' it must be reported on your 2022 tax return, 

[jerrylshen]

in what year did you do the contribution to the IRA? 

I contributed to both IRAs in 2022.

in what year did you withdraw it?  if you withdrew it in 2022, it must be reported.  if you withdrew it in 2023, wait until you file your 2023 tax return to file it.

I withdrew it in 2022.

I think the instuctions are confusing.  if the 1099-R states '2022' it must be reported on your 2022 tax return,

Well, that simplifies things, both 1099-R states 2022.

But would it be different if the roth conversion was done in 2023 but the 1099-R form state 2022?

Thanks

[NCperson]

@jerrylshen 

<< But would it be different if the roth conversion was done in 2023 but the 1099-R form state 2022?>>

That can't occur.  it is not how the process works.  

2022 Roth Conversions must occur by December 31, 2022; they can't extend into the following year.

[jerrylshen]

@NCperson 

ahh alright, because that's what happened to my gf.

Her situation:

In 2022, deposited $6k in traditional IRA.

In 2022, converted $3k traditional IRA to Roth IRA.

In Jan 19, 2023, converted $3k traditional IRA to Roth IRA.

She has both 5498 & 1099-R (shows the $3k distribution for 1, 2a. 7 is 2, IRA/SEP/Simple is X) for traditional IRA, but only Form 5498 (says the $6k) for Roth IRA.  All the forms says 2022.

So, do you have any advice to what she should do?  

Thanks

[NCperson]

@jerrylshen  that situation is consistent with what I described

the 1099-R and only the 1099-R goes on the tax return.  The 5498 is for information only.

The $3000 conversion is reflected on a 1099-R for 2022. 

There will be another 1099-R for the other $3,000 (that converted in Jan. 2023) that will arrive early in 2024 with a "2023" date on it.  

I can't explain why the 5498 has $6,000 on it, unless there was another conversion for another $3,000 conversion early in 2022. 

https://www.hrblock.com/tax-center/income/retirement-income/traditional-to-roth-ira-conversion/#:~:t....

[jerrylshen]

@NCperson Thanks for all the help!