IRA Conversion 19 & 20

[MrMikeLives]

on 7/15/20 I opened and funded a Traditional IRA for both 2019 and 2020 with after tax dollars. (amt Deposited 12k).  On 7/23/20 I opened and funded a Roth IRA and moved the 12k into this Roth.  

I have no other Traditional IRA accts and year end balance of the Traditional Acct is $0.  

I am trying to figure out how to report this for both tax years.

From what I read, it sounds like I need to:

* amend my 2019 Tax Return to show I opened a Traditional IRA and funded it for 6k.

* Then 2020 I need to report that I funded the Traditional IRA (6k) and then report the full Roth Conversion of 12k for 2020.  

 Appreciate any help. If there is another thread that walks me thru the steps that would be most helpful!

Thanks

[DanaB27]

Yes, you will have to amend your 2019 tax return to add the $6,000 contribution.

Please see How do I amend a 2019 return in TurboTax?

To enter the $6,000 nondeductible contribution to the traditional IRA on the 2019 amended return:

1. Click on "Search' on the top right and type “IRA contributions”
2. Click on “Jump to IRA contributions"
3. Select “traditional IRA”
4. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
5. Enter the amount you contributed: $6,000
6. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
7. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “No” 
8. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

Yes, you need to report the contribution the Traditional IRA (6k) and then report the full Roth Conversion of 12k for 2020.  

Steps on your 2020 tax return:

To enter the $6,000 nondeductible contribution to the traditional IRA for 2020:

1. Open you 2020 return
2. Click on "Search" on the top right and type “IRA contributions”
3. Click on “Jump to IRA contributions"
4. Select “traditional IRA”
5. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
6. Enter the amount you contributed: $6,000
7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contributions before this tax year.
9. If you had a basis in the Traditional IRA before then enter the amount: $6,000.
10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount.

To enter the 1099-R distribution/conversion: 

1. Click on "Search" on the top right and type “1099-R”
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Your 1099-R Entries" screen click "continue"
6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis

[MrMikeLives]

Thank you!!  This was SO HELPFUL!

[jeff2021]

yes, thank you very much, this was extremely helpful and has allowed me to do this properly for 2020 and adjust accordingly...