Reporting Backdoor Roth Contribution for 2019 and Conversion for 2020

[statusquo]

So my situation is similar to this one https://ttlc.intuit.com/community/retirement/discussion/how-to-report-backdoor-roth-ira-for-2019-in-... but the answers seem to be conflicting.

In an attempt to do the backdoor roth IRA conversion, I (opened and) made a traditional IRA non-deductible contribution of 6000 for 2019 in June 2020. I then converted this amount to an existing Roth IRA a week later.

Here is the dilemma, due to some online advice I thought I could wait and do everything this year (2020 tax year) so the amount of 6000 wasn't reported in my 2019 tax return when I filed around July 2020.

Now going back to reporting the backdoor roth ira conversion for my 2020 tax, how can I fix this?

1. Do I need to file an amendment for my 2019 tax return and include Form 8606? I heard you don't have to do amendment based on this https://ttlc.intuit.com/community/after-you-file/discussion/late-filing-of-form-8606/00/1301639 but would like to be sure
2. Or do I just file form 8606 separately? what about state (I'm in CA)?
3. so if I do item #1 above, it seems I need to wait for the IRS to process my return before I can file my 2020 tax return. Is that right?
4. If I do item #2 above only, do I still need to wait for the IRS to process Form 8606 before submitting my 2020 tax return?

Appreciate your help!

[DanaB27]

If you did not report the traditional IRA at all on your 2019 return, then you can file only Form 8606.Sign Form 8606 and send it to the IRS at the same time and place you would otherwise file Form 1040. Be sure to include your address on page 1 of the form and your signature and the date on page 2 of the form: 2019 Form 8606.

If you didn't report and deduct the traditional IRA  on your 2019 return then you do not need to amend your CA state return.

Once you have submitted Form 8606 then you can file your 2020 tax return.

[statusquo]

Thanks @DanaB27 for the help on this one and the other post  as well. I'm starting to understand more after reading some more posts.

Also just to be clear that I made a 2019 non-deductible contribution to my traditional IRA in 2020. I will update the question above to include non-deductible but I believe you understood it?

One quick question, so there is no need to wait for the IRS to receive my 2019 Form 8606 before efiling my 2020 tax with 2020 Form 8606 with the 2019 basis? I can just mail 2019 Form 8606 on the same day I e-file my 2020 tax with 2020 Form 8606? sorry just concerned of the timeline with the delay Form 8606 if the IRS receives my 2020 tax and 2020 Form 8606.

I may need more help filing out Form 8606 (or rather verifying)  for 2019 and then make some update to my 2020 Form 8606 with the 2019 Form 8606 cost basis.

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For those who also wonder why there is conflict information about filing form 8606 with 1040X, see this post https://ttlc.intuit.com/community/retirement/discussion/i-neglected-to-file-my-non-deductible-ira-co... and a few comments after that.

[DanaB27]

Yes, I understood you made a nondeductible traditional IRA contribution.

Yes, you can e-file your 2020 return after you mailed the 2019 Form 8606. It is best to use some tracking service when you mail the Form 8606 to have confirmation when the IRS receives it.

[statusquo]

So I just realized that I had a job change in 2019 and I opened a rollover IRA in 2019 to rollover my 401K from previous employer. It seems I read that the rollover IRA is a subcategory of traditional IRA so it is still a traditional IRA.

Do you think this will affect my 2019 tax still? Does it affect my 2020 tax as part of the backdoor conversion? So here is my updated scenario

1. Opened rollover IRA in 2019 (around June 2019) and rollover my 401K from previous employer in the same month and year
2. Opened a new traditional IRA in June 2020 to make a nondeductible 2019 contribution of 6000
3. I did a backdoor by converting the 6000 from the new traditional IRA to an existing ROTH IRA a week later in June 2020

I rollover my previous employer 401k to rollover IRA in 2019 but converted my 6000 in a new traditional IRA in 2020 (even though that amount belongs to the 2019 nondeductible contribution), does this require me to amend my 2019 tax return when I also do my 2020 Form 8606?

One article I read https://www.marottaonmoney.com/qa-can-i-do-backdoor-roth-and-an-ira-rollover-in-the-same-year/  that addresses this but it's still not clear to me regarding my case.

Appreciate your help!

[statusquo]

@DanaB27, so I went back to my Turbotax 2019 software (downloaded/CD version) and was able to fill the 2019 Form 8606 by going to Deductions and Credits > Traditional and Roth IRA Contributions and worked my way there and answering all the questions. This is what I have in 2019 Form 8606:

Box 1 --- 6000

Box 2 --- 0

Box 3 --- 6000

Boxes 4 to 13 --- blank

Box  14 --- 6000

Boxes 15 to 25 --- blank

Does that look correct? If you can help me with the questions I posted earlier that would be great. I hope it does not affect my 2019 tax and I would need to amend and perhaps make any changes to my current 2019 Form 8606 as well.

Now I need to figure out how to report the backdoor conversion in 2020 tax form and also 2020 Form 8606. 

[DanaB27]

It depends, you should have gotten a 2019 1099-R for the rollover and entered it into TurboTax on your 2019 return. The rollover is not taxable but has to be reported. The distribution is shown on line 4c on Form 1040 for the year 2019.

Your 2019 8606 looks correct.

Please be aware, that when TurboTax asks you about the value of the Traditional IRA you will have to enter the total value of all of your Traditional IRAs. Therefore, some of the basis will be allocated to the amount remaining in the other Traditional IRA.