Hi! I am attempting to complete my 2024 taxes and am very confused on how to complete the 8606 form.
I completed my backdoor Roth for 2023 and 2024 in the 2024 year. I received my 1099-R from Fidelity showing that I have a total of $12998. After looking closer, the timeline is as follows:
March 2024: added $6500 to my IRA
March 2024: transferred $5998 to my Roth (due to losses from investments)
September 2024: added $7000 to my IRA
September 2024: transferred $7000 to my Roth
I did not realize that I had such a loss when I did the rollover in 2023, therefore when I did my taxes for 2023, I completed the form 8606 as the $6500.
I am confused on how to amend my 2023 taxes. I am even more confused on how to complete my split-year backdoor Roth without also having to amend it in the future.
I currently have: 1) $7000, 2) 5998, 3) 12998, 5) 12998, 10)x, 13) 12998, 14) 0, 15a) 0, 15c) 0
Does this seem correct?
You do not need to amend the 2023 tax return. You entered $6,500 correctly as nondeductible contribution and should have a 2023 Form 8606 with a $6,500 basis on line 14.
Your 2024 Form 8606 should have $7,000 on line 1, $6,500 on line 2, $13,500 on lines 3 and 5, and therefore you should have a on line a basis of $502 to carry over to future years.
Hi Dana! Thank you so much for replying. Do you know how it'll affect me filing out my returns for the following year? Does it just keep carrying over?