Backdoor Roth IRA made in 2022 for tax year 2021

[Anonymous]

Hello,

I would like to double check the following case: I've made a $6,000 contribution to a Traditional IRA in January 2022 and converted the whole amount to Roth IRA a week later. The form 1099-R was generated on Jan 21st.

TurboTax guideline on backdoor IRA conversion states the following:

You should report your conversion for the year you receive this 1099-R:

• If you received this form in 2021, complete both steps below to report it on your 2021 taxes
• If you'll receive this form in 2022, wait to report it on your 2022 taxes. In this case, only complete Step 1 below for your 2021 taxes. You’ll complete both steps next year when filing your taxes for 2022

Do I understand correctly that in my case (with form 1099-R generated on Jan 21st) I don't need to add 1099-R in my 2021 tax return? In this case, form 8606 shows total basis of traditional IRAs of $6,000 in field 14, and doesn't show any conversion happened, as well as field 4a on form 1040 remains blank?

[Hal_Al]

@Anonymous  said "The form 1099-R was generated on Jan 21st". 

Is your 1099-R for 2022 or 2021?

If you converted the money to a Roth in January 2022, you should not receive your 2022 form 1099-R until Jan/Feb 2023. So, what matters is not when the 1099-R was issued; but for what tax year  the 1099-R (2021 or 2022) is issued.  You plan administrator should not be issuing a 2021 1099-R for a distribution made in 2022. The fact that the contribution was made in 2022 for tax year 2021, does not change that. 

Rewording your question:

Q. Do I understand correctly that  I don't  add a 2022 form1099-R in my 2021 tax return? 

A. Yes, that is correct.  If, instead, you have a 2021 1099-R, you need to ask your plan administrtor what's going on. 

Q. Form 8606 shows total basis of traditional IRAs of $6,000 in field 14, and doesn't show any conversion happened, as well as field 4a on form 1040 remains blank?

A. That's correct.

[Critter-3]

Since you did not do the "backdoor conversion"  in the same tax year as the contribution was for this will be handled on both the 2021 & 2022 returns.   The non deductible contribution for the 2021 tax year will be reported on the 2021 form 8606  and then the conversion on the 2022 tax return.