Issue with my back door Roth IRA conversion
Posted: Thu May 02, 2013 10:38 pm
All,
I am a newbie and need some advise/help from the experts here. I apologize in advance if the issue that i am facing has been covered earlier. If so, would appreciate if a kind soul could forward me a link. (I have applied for extension for filing taxes) I have read a lot about the back- door Roth conversions and in my case, i have a rather different issue.
1. Deposited $5000 into traditional IRA (had told the broker Scott trade that this was a non-deductible IRA)
2. converted traditional IRA to Roth IRA
3. It appears that only $3500 got converted to Roth and remaining $1500 was withheld as taxes (this should not have happened and i believe that this was a mistake on part of the broker.. but anyways they did so).
4. So what i have is 2 1099-R's from the broker shown below for the IRA
1099-R (first form) details (non-blank fields only) shown below:
1. gross distribution $1500
2a. Taxable amount $1500
2b. Taxable amount not determined (x)
Total Distributions (x)
4. federal Income tax withheld $1500
7. distribution code(s) 1
IRA/SEP/SIMPLE (X)
1099-R (second form) details (non-blank fields only) shown below:
1. gross distribution $3500
2a. Taxable amount $3500
2b. Taxable amount not determined (x)
Total Distributions (x)
4. federal Income tax withheld $1500
7. distribution code(s) 2
IRA/SEP/SIMPLE (X)
Pl. note that my IRA was non-deductible... and i talked to Scott Trade and they said.. they cannot help me out and I want to know what to fill in my form 8606. I have turbo tax but i dont think turbo tax will be able to handle this elegantly. At this point in time, i am ok to recover my $1500 tax and be happy with converting only $3500 to Roth.
Can any kind sould help me with this potentially complicated issue.
regards
J
I am a newbie and need some advise/help from the experts here. I apologize in advance if the issue that i am facing has been covered earlier. If so, would appreciate if a kind soul could forward me a link. (I have applied for extension for filing taxes) I have read a lot about the back- door Roth conversions and in my case, i have a rather different issue.
1. Deposited $5000 into traditional IRA (had told the broker Scott trade that this was a non-deductible IRA)
2. converted traditional IRA to Roth IRA
3. It appears that only $3500 got converted to Roth and remaining $1500 was withheld as taxes (this should not have happened and i believe that this was a mistake on part of the broker.. but anyways they did so).
4. So what i have is 2 1099-R's from the broker shown below for the IRA
1099-R (first form) details (non-blank fields only) shown below:
1. gross distribution $1500
2a. Taxable amount $1500
2b. Taxable amount not determined (x)
Total Distributions (x)
4. federal Income tax withheld $1500
7. distribution code(s) 1
IRA/SEP/SIMPLE (X)
1099-R (second form) details (non-blank fields only) shown below:
1. gross distribution $3500
2a. Taxable amount $3500
2b. Taxable amount not determined (x)
Total Distributions (x)
4. federal Income tax withheld $1500
7. distribution code(s) 2
IRA/SEP/SIMPLE (X)
Pl. note that my IRA was non-deductible... and i talked to Scott Trade and they said.. they cannot help me out and I want to know what to fill in my form 8606. I have turbo tax but i dont think turbo tax will be able to handle this elegantly. At this point in time, i am ok to recover my $1500 tax and be happy with converting only $3500 to Roth.
Can any kind sould help me with this potentially complicated issue.
regards
J