I to fill out a backdoor Roth IRA the right way.

[stevens73]

I think I messed myself up a lot on this. I keep hearing about form 8606 and how to fill it out the right way. Only when I go to Help on how to do a backdoor Roth IRA it tells you to jump to the Traditional IRA and fill that out and I think I got that right. The next step is filling out the 1099-r form which I do not have. I added 100.00 each week for my Tran IRA account and found out I need to move the money over to the Roth IRA soon as I could so a few I did right away.  Then later on I moved a few more over later.I have moved money over 3 times so far this year. So you know all of it was done this year and not that long ago.  From what I think that the 1099-r Will come to me next year to fill that out because I added and moved everything in 2020 for the tax year 2019. So not sure what parts I need to do and how to be sure I do it right. Then, What do I need for the next year when I do get a 1099-r. 

I hope this is clear to understand.

Do i need to do that 1099-r now and if so what to put in it when you do not have the form

Do i need to do the form 8606 this year for 2019 when I was all done in 2020

PLus how to fill them both out if I do?

The amount I did the backdoor Roth was 940.00 only it adds up to 987.54 My account does not show any gains so far on it. My guess that will show up on the 1099-r I take it if it does have any gains at all.

Thanks so much for any help. I really need to learn how this for later on.

[fanfare]

whatever you put in in 2019 or for 2019, and chose to convert, elect to be a non-deductible contribution for 2019 on your 2019 tax return.

Form 8606 will be generated.

[fanfare]

"The amount I did the backdoor Roth was 940.00 only it adds up to 987.54"

If your contribution was 940 and the IRA gained 47.54 (or already had a value of 47.54) you will be taxed on the 47.54 on your 2020 tax return.

[stevens73]

Ok, that will show up on my 2020 so they will send the form 1099-r I take it then. I thought that what might happen. If I had done all of it in 2019 then I would have gotten something to add to my taxes I am doing now.

[stevens73]

Well, I know the help thinks only stated something about the 1099-r.  SO if I cannot find it, can I look for it than for the 8606 to fill out? I guess do a jump to that point. When I was filling out my stuff I had to find it when I did my taxes. So I had to hunt it down to add it. I made sure I made it non-deductible.

[stevens73]

So you know when I was looking around for all of this. Turbo Tax was or did look like it had a red thing that needed to be fixed on that 1099-r I have a feeling when I fill out the 8606 then that should change because it will know it all happen this year, not in 2019. I just hope I get it all right. So I will not mess with the 1099-r this year then.

[stevens73]

Just so you know I did look for the 8606 and it was filled out. Now I just have to figure out how to fix the1099-r think from wanting me to fill it out this year. You would think that it would know that if I told it was all done from Jan1, 2020 to the July 15, 2020 deadline that would not happen so not sure how to fix it. The only thing it might show it as an error when checking my return I guess. Wanted to thank you for the help. First-year doing it. Only thing I just should have done Roth IRA to start. was reading a book on keeping taxes low. think that is for higher-income jobs than mine.

[fanfare]

invest your Roth in a self-directed brokerage Roth account, you'll do ok.

Hint: the market is going up right now so every long investor looks like a genius.