Tax form to be filled for Back Door Roth IRA

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FB01
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Joined: Fri May 20, 2011 12:36 am

Tax form to be filled for Back Door Roth IRA

Post by FB01 »

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
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livesoft
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Re: Tax form to be filled for Back Door Roth IRA

Post by livesoft »

Are you using tax software? Desktop (not online)? Which one? Is it not helpful?
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DSInvestor
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Re: Tax form to be filled for Back Door Roth IRA

Post by DSInvestor »

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.
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Topic Author
FB01
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Re: Tax form to be filled for Back Door Roth IRA

Post by FB01 »

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.
So 8606 is the only form I need to fill or is there any other form?

JR
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livesoft
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Re: Tax form to be filled for Back Door Roth IRA

Post by livesoft »

One other form you may possibly need to use is Form 1040. That form is where 1099-R information usually ends up.
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jebmke
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Re: Tax form to be filled for Back Door Roth IRA

Post by jebmke »

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.
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DSInvestor
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Re: Tax form to be filled for Back Door Roth IRA

Post by DSInvestor »

FB01 wrote:
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.
So 8606 is the only form I need to fill or is there any other form?

JR
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.

If your Traditional IRA contributions were deductible, then the deductible amount appears on form 1040 line 32.
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theflyer
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Re: Tax form to be filled for Back Door Roth IRA

Post by theflyer »

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
DSInvestor
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Re: Tax form to be filled for Back Door Roth IRA

Post by DSInvestor »

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
There are two types of recharacterizations.
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.
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