Hi,
I had put money in Roth IRA but my income exceeded the limit so end of the FY 2015, I did the Back door Roth IRA for me and my wife's account. Because of this I had some gain/loss.
I read that I had to fill form 8606.
Vanguard has send me form 1099-R. Is that the one I need to update in form 8606?
This is the first time I will doing. Any help is appreciated.
-JR
Tax form to be filled for Back Door Roth IRA
Tax form to be filled for Back Door Roth IRA
Thanks, |
FB
Re: Tax form to be filled for Back Door Roth IRA
Are you using tax software? Desktop (not online)? Which one? Is it not helpful?
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Re: Tax form to be filled for Back Door Roth IRA
The 1099-R covers the Roth conversion and not the TIRA contribution. Make sure to enter your Traditional IRA contributions as well into your tax software.
Re: Tax form to be filled for Back Door Roth IRA
So 8606 is the only form I need to fill or is there any other form?DSInvestor wrote:The 1099-R covers the Roth conversion and not the TIRA contribution. Make sure to enter your Traditional IRA contributions as well into your tax software.
JR
Thanks, |
FB
Re: Tax form to be filled for Back Door Roth IRA
One other form you may possibly need to use is Form 1040. That form is where 1099-R information usually ends up.
Re: Tax form to be filled for Back Door Roth IRA
I just did a Roth conversion 1099-R on a tIra to Roth with a tax basis with H&R Block desktop. I decide to use the sing-along-with-Mitch method rather than go directly to the forms just to see if it got it right. The 8606 came out correct (as did the 1040). So far, I have been relatively happy with H&R Block desktop software.
Stay hydrated; don't sweat the small stuff
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Re: Tax form to be filled for Back Door Roth IRA
Form 8606 handles the tracking of IRA basis (non-deductible contributions) in the event that you have made non-deductible Traditional IRA contributions. It also handles the calculation of the taxable and non-taxable amounts of conversions and withdrawals.FB01 wrote:So 8606 is the only form I need to fill or is there any other form?DSInvestor wrote:The 1099-R covers the Roth conversion and not the TIRA contribution. Make sure to enter your Traditional IRA contributions as well into your tax software.
JR
If your Traditional IRA contributions were deductible, then the deductible amount appears on form 1040 line 32.
Re: Tax form to be filled for Back Door Roth IRA
I have a similar question. I'm using the desktop version of Turbo Tax. Question: TT asks me how much of my contribution in 2015 I "switch[ed]," or "recharacterize[d]" to a Roth. It seems the answer should be $0 since the 1099-R I received from Vanguard covers the conversion to Roth. Is that correct?
I find this "Tell Us How Much You Transferred" page in TT very confusing because "recharacterization" seems to deal with undoing a Roth conversion but the specific question it asks is: "Amount Switched from a Traditional IRA Contribution To a Roth IRA Contribution"
Thanks in advance.
Don
I find this "Tell Us How Much You Transferred" page in TT very confusing because "recharacterization" seems to deal with undoing a Roth conversion but the specific question it asks is: "Amount Switched from a Traditional IRA Contribution To a Roth IRA Contribution"
Thanks in advance.
Don
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- Joined: Sat Oct 04, 2008 11:42 am
Re: Tax form to be filled for Back Door Roth IRA
There are two types of recharacterizations.theflyer wrote: I find this "Tell Us How Much You Transferred" page in TT very confusing because "recharacterization" seems to deal with undoing a Roth conversion but the specific question it asks is: "Amount Switched from a Traditional IRA Contribution To a Roth IRA Contribution"
Thanks in advance.
Don
1. Recharacterization of conversion to undo some or all of a conversion.
2. Recharacterization of IRA contribution to change your mind about the type of IRA contribution you made. If you contributed to Roth IRA but found that you're ineligible for Roth IRA contributions, you can recharacterize your Roth IRA contribution to a Traditional IRA contribution. Recharacterization of contribution can be Traditional to Roth or Roth to Traditional.