Do I need to amend my 2021 Tax Return for converting a 2021 traditional IRA contribution to a backdoor Roth IRA in 2022?

[jclizzy]

In 2021, I made a $6000 contribution to my traditional IRA account with intent to convert it to a backdoor Roth IRA for the 2021 tax year. However, I was dumb and waited 'til that December to convert my contribution. My broker didn't execute the conversion until January 2022.

Fast forward to 2023. I received a 1099-R with code R for 2022. When I entered that info into TurboTax 2022, it said I would have to amend my 2021 tax return. However, I am seeing conflicting info in these forums and all over the internet. Some sources say I do have to amend my 2021 return, while others state I only need to fill out and mail Form 8606 to the IRS.

Can someone confirm what the correct path is? If it's to amend my 2021 return, how do I do that in TurboTax 2021? If it's to fill out Form 8606, guidance there would be appreciated.

Thanks.

[Opus 17 · Accepted solution]

Regardless of whether or not you completed the conversion in time, you were required to report the non-deductible contribution on your 2021 tax return.  That would have required including form 8606 with your 2021 tax return.  If you did not report it, you need to report it now.

Form 8606 is one of the forms that can be filed by itself, because it has a signature line.  You will need to download the 2021 version of the form and instructions, not the current 2022 version.  Complete the form following the instructions, sign it, mail it to the IRS as indicated in the instructions, and best to use a mail service with tracking and proof of delivery.  Keep a copy for your records.

https://www.irs.gov/prior-year-forms-and-instructions?find=8606&items_per_page=200

Then, you will need the numbers from the 2021 form 8606 to prepare your 2022 tax return which includes the conversion. 

[jclizzy]

Excellent, thanks for the clarification!