Backdoor Roth: Do I need to file 8606 for a previous year?

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freelancer
Posts: 24
Joined: Sat Jan 10, 2015 2:55 pm

Backdoor Roth: Do I need to file 8606 for a previous year?

Post by freelancer » Tue May 10, 2016 2:06 am

I did my first Backdoor roth conversion in 2015. I contributed 11,000 to a TIRA in early April 2015. 5500 of this was for 2014 and 5500 for 2015. Then I converted all of it to a Roth IRA.

I had already filed my taxes for 2014 by this time and I did not file a form 8086 for 2014. I did file a form 8086 along with my 2015 tax return that I filed last month.

Do I need to file another 8086 for 2014 even though I did the conversion in 2015?

Thanks for the advice!

kaneohe
Posts: 5955
Joined: Mon Sep 22, 2008 12:38 pm

Re: Backdoor Roth: Do I need to file 8606 for a previous year?

Post by kaneohe » Tue May 10, 2016 8:48 am

Perhaps go thru the 8606 by hand https://www.irs.gov/pub/irs-pdf/f8606.pdf for 2014 (you will have to adjust the dates on the 2015 form linked for 2014 or google up the 2014 directly). It is just a few lines exercise. Note the decision tree at line 3 which tells you to skip a bunch of lines.
That establishes the 2014 basis for the 2015 F8606.

What does your original (and only) 8606 look like for 2015?

Topic Author
freelancer
Posts: 24
Joined: Sat Jan 10, 2015 2:55 pm

Re: Backdoor Roth: Do I need to file 8606 for a previous year?

Post by freelancer » Tue May 10, 2016 10:07 am

Thanks for your reply. The 2015 8606 looks like this:

Image
Image

kaneohe
Posts: 5955
Joined: Mon Sep 22, 2008 12:38 pm

Re: Backdoor Roth: Do I need to file 8606 for a previous year?

Post by kaneohe » Tue May 10, 2016 10:34 am

My guess is that you should file a 2014 F8606 to establish your basis for that yr. If IRS got curious about your 2015 F8606, they would want to know where your line 2 basis came from and would not be able to find the 2014 F8606. You could file that as a stand alone form....be sure to fill out all the info at top of page and sign at end of form.

btw.......the extra 200+ dollars left........is that because you didn't convert right after the contributions and you had gains? You might want to consider
the next time you do this, converting everything so that your balance at yr end is 0. Might make your life a bit easier.

Topic Author
freelancer
Posts: 24
Joined: Sat Jan 10, 2015 2:55 pm

Re: Backdoor Roth: Do I need to file 8606 for a previous year?

Post by freelancer » Tue May 10, 2016 3:50 pm

Thanks for the advice. I will make sure my balance at the year end is 0 this year.

retiredjg
Posts: 38455
Joined: Thu Jan 10, 2008 12:56 pm

Re: Backdoor Roth: Do I need to file 8606 for a previous year?

Post by retiredjg » Tue May 10, 2016 5:54 pm

Agreed. Your 2015 Form is not supported by a 2014 form which should have been filed. So they don't know where that $5,500 on line 2 came from. Well, they probably "know", but you didn't document it.

You can find the 2014 form available on the internet. Fill it in by hand and send it in. You will likely not get any response from them.

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