(Non)Deductible Traditional IRA Madness - please advise

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JohnDoh
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(Non)Deductible Traditional IRA Madness - please advise

Post by JohnDoh »

For starters, there's a reason my name is John Doh :oops: .

My sad story. I am on the cusp of retirement at age 62. The tax planning that I went into 2021 with turns out to be at odds with the tax planning I was to go out of 2021 with and into 2022. In particular, I am looking to do one or two years of Roth conversions along with closing out a variable annuity. Historically, I've been in the 12% tax bracket and I expect to be back in that bracket in 2023 and beyond.

1) In the expectation that 2021 would be in the 12% bracket, I made a $7,000 Traditional IRA contribution that I planned would be 100% deductible.
2) During 2021 I rolled over the traditional IRA into my 403b. My IRA had no basis (i.e. was 100% deductible).
3) Now, my new plan might have me recognize income for 2021 up to the top of the 22% or 24% bracket, making the IRA contribution non-deductible. To do Roth conversions I would transfer other 403b funds into the traditional IRA and then convert from there to Roth.
4) Form 8606 scares me but probably shouldn't based on what I've read. I'm just wary of getting tangled in red tape for aeons to come.
5) I understand, however, that if I do a 2021 Roth conversion of $7,000 or more I can essentially turn the 2021 contribution into a backdoor Roth. The key seems to be ending the year with $0.00 in all IRAs.
6) For "reasons" the lowest I will be able to get my IRAs on 12/31/2021 is about $3.00 (three dollars). Turbotax shows that the financial impact is de minimis. I believe I could just ignore the miniscule basis of my IRA going forward and the IRS won't care. Or I could wipe that tiny basis out in a 2022 conversion.

So, what to do?
a) avoid the situation and just accept that I shot myself in the foot?
b) barge boldly ahead, Form 8606 be damned?
c) something else and better that I haven't yet thought of? (e.g. is it possible to reverse the $7,000 contribution using funds transferring into the IRA from the 403b? money is fungible, but somehow it's not the "same" money in my mind ...)

Thanks.
jasonp99
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by jasonp99 »

I've done a "backdoor" Roth IRA conversion every year for many years, for my wife and my self. Sometime in January I add the max contribution to our non-deductible IRA's (which have zero balance since they are full converted every year), then a day or two later I do the backdoor conversion to our existing Roth IRA's. Then would fill out two 8606's (one for each of us) when I file taxes the next year.

I don't have to wait until the following year to make a contribution for the current year, since I already know our income will be higher than the Roth limit.

The 8606's are pretty easy to fill out, I wouldn't worry about complexity there.

But, bad news, it looks like the pending Build Back Better Act, if passed, would prohibit any backdoor conversions:

Firstly, it would prohibit any after-tax contributions in 401(k) and other workplace plans and IRAs from being converted to Roth savings. This rule would apply to all income levels starting after Dec. 31, 2021.
spammagnet
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by spammagnet »

jasonp99 wrote: Sat Nov 20, 2021 1:04 am... But, bad news, it looks like the pending Build Back Better Act, if passed, would prohibit any backdoor conversions:

Firstly, it would prohibit any after-tax contributions in 401(k) and other workplace plans and IRAs from being converted to Roth savings. This rule would apply to all income levels starting after Dec. 31, 2021.
Take care with discussions of pending legislation, to avoid thread lock.
retiredjg
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by retiredjg »

JohnDoh wrote: Fri Nov 19, 2021 4:41 pm For starters, there's a reason my name is John Doh :oops: .

My sad story. I am on the cusp of retirement at age 62. The tax planning that I went into 2021 with turns out to be at odds with the tax planning I was to go out of 2021 with and into 2022. In particular, I am looking to do one or two years of Roth conversions along with closing out a variable annuity. Historically, I've been in the 12% tax bracket and I expect to be back in that bracket in 2023 and beyond.

1) In the expectation that 2021 would be in the 12% bracket, I made a $7,000 Traditional IRA contribution that I planned would be 100% deductible.
2) During 2021 I rolled over the traditional IRA into my 403b. My IRA had no basis (i.e. was 100% deductible).
3) Now, my new plan might have me recognize income for 2021 up to the top of the 22% or 24% bracket, making the IRA contribution non-deductible. To do Roth conversions I would transfer other 403b funds into the traditional IRA and then convert from there to Roth.
4) Form 8606 scares me but probably shouldn't based on what I've read. I'm just wary of getting tangled in red tape for aeons to come.
5) I understand, however, that if I do a 2021 Roth conversion of $7,000 or more I can essentially turn the 2021 contribution into a backdoor Roth. The key seems to be ending the year with $0.00 in all IRAs.
6) For "reasons" the lowest I will be able to get my IRAs on 12/31/2021 is about $3.00 (three dollars). Turbotax shows that the financial impact is de minimis. I believe I could just ignore the miniscule basis of my IRA going forward and the IRS won't care. Or I could wipe that tiny basis out in a 2022 conversion.

So, what to do?
a) avoid the situation and just accept that I shot myself in the foot?
b) barge boldly ahead, Form 8606 be damned?
c) something else and better that I haven't yet thought of? (e.g. is it possible to reverse the $7,000 contribution using funds transferring into the IRA from the 403b? money is fungible, but somehow it's not the "same" money in my mind ...)

Thanks.
I've read this over several times and am having trouble understanding what you did or want to to.

You say you put $7k into tIRA and then you say you rolled over the tIRA into your 403b. Was that $7k (which will now be a non-deductible contribution) included in the money you rolled over into the 403b? [Note: The 403b is not allowed to accept non-deductible contributions.]

If you rolled a non-deductible contribution into your 403b, I think you only have two choices....
  • 1. Get the $7k back out by telling your 403b that you accidentally gave them $7k in post-tax money. They are obliged to give it back but I don't think it goes back into your IRA (not positive about that). And I think they will also give you back the associated earnings which will be taxable.

    2. Leave the $7k in the 403b and abandon the $7k in basis. In other words, eventually if you spend all of the 403b, you will pay taxes on that $7k again.
Can you try to explain this again?

What was in the tIRA before 2021?

What did you roll into the 403b?

Why do you think you can get "other money" out of the 403b in order to do Roth conversions? (This is generally not allowed while still working there, but there are some exceptions.)

Where is this $3 coming from?
Topic Author
JohnDoh
Posts: 186
Joined: Sat Nov 30, 2013 10:28 am

Re: (Non)Deductible Traditional IRA Madness - please advise

Post by JohnDoh »

retiredjg wrote: Sat Nov 20, 2021 8:26 am
JohnDoh wrote: Fri Nov 19, 2021 4:41 pm For starters, there's a reason my name is John Doh :oops: .

My sad story. I am on the cusp of retirement at age 62. The tax planning that I went into 2021 with turns out to be at odds with the tax planning I was to go out of 2021 with and into 2022. In particular, I am looking to do one or two years of Roth conversions along with closing out a variable annuity. Historically, I've been in the 12% tax bracket and I expect to be back in that bracket in 2023 and beyond.

1) In the expectation that 2021 would be in the 12% bracket, I made a $7,000 Traditional IRA contribution that I planned would be 100% deductible.
2) During 2021 I rolled over the traditional IRA into my 403b. My IRA had no basis (i.e. was 100% deductible).
3) Now, my new plan might have me recognize income for 2021 up to the top of the 22% or 24% bracket, making the IRA contribution non-deductible. To do Roth conversions I would transfer other 403b funds into the traditional IRA and then convert from there to Roth.
4) Form 8606 scares me but probably shouldn't based on what I've read. I'm just wary of getting tangled in red tape for aeons to come.
5) I understand, however, that if I do a 2021 Roth conversion of $7,000 or more I can essentially turn the 2021 contribution into a backdoor Roth. The key seems to be ending the year with $0.00 in all IRAs.
6) For "reasons" the lowest I will be able to get my IRAs on 12/31/2021 is about $3.00 (three dollars). Turbotax shows that the financial impact is de minimis. I believe I could just ignore the miniscule basis of my IRA going forward and the IRS won't care. Or I could wipe that tiny basis out in a 2022 conversion.

So, what to do?
a) avoid the situation and just accept that I shot myself in the foot?
b) barge boldly ahead, Form 8606 be damned?
c) something else and better that I haven't yet thought of? (e.g. is it possible to reverse the $7,000 contribution using funds transferring into the IRA from the 403b? money is fungible, but somehow it's not the "same" money in my mind ...)

Thanks.
I've read this over several times and am having trouble understanding what you did or want to to.

You say you put $7k into tIRA and then you say you rolled over the tIRA into your 403b. Was that $7k (which will now be a non-deductible contribution) included in the money you rolled over into the 403b? [Note: The 403b is not allowed to accept non-deductible contributions.]

If you rolled a non-deductible contribution into your 403b, I think you only have two choices....
  • 1. Get the $7k back out by telling your 403b that you accidentally gave them $7k in post-tax money. They are obliged to give it back but I don't think it goes back into your IRA (not positive about that). And I think they will also give you back the associated earnings which will be taxable.

    2. Leave the $7k in the 403b and abandon the $7k in basis. In other words, eventually if you spend all of the 403b, you will pay taxes on that $7k again.
Can you try to explain this again?

What was in the tIRA before 2021?

What did you roll into the 403b?

Why do you think you can get "other money" out of the 403b in order to do Roth conversions? (This is generally not allowed while still working there, but there are some exceptions.)

Where is this $3 coming from?
Thanks to all for their input and my apologies for not being clear. Let me try again.
  1. I am age 62, currently employed by CURRENT-EMPLOYER, and have for many years managed my income to be at the top of the 12% tax bracket.
  2. CURRENT-EMPLOYER offers two 403b plans, one for mandatory contributions (plus employer match) and one for voluntary supplementary contributions (with no match). The rules for getting money out is different for each 403b plan. The mandatory plan does not allow transfers out until separation of service, which will not happen in 2021 but may happen in 2022. The supplemental plan allows transfers out after age 59.5 (which I am), regardless of employment status.
  3. I also have an old 403b with PAST-EMPLOYER which I can access at will since I no longer work there.
  4. I have exactly one Traditional IRA.
  5. As part of my long practice, I have annually made the maximum deductible traditional IRA contribution each year. I did that in the beginning of 2021, with a $7,000 traditional IRA contribution. I then rolled it over to CURRENT-EMPLOYER's voluntary 403b leaving a stranded $3 in my Traditional IRA. Let's assume I cannot do anything with the $3 in 2021. My current total IRA balance is $3 now and will be at least $3 on 12/31/21.
  6. So far, I have not done anything that would undermine my 2021 plan. I could do everything I had originally planned, be in the 12% bracket, and have a fully deductible IRA contribution for 2021.
  7. BUT: as part of my year-end 2021 tax planning, I am inclined to want to do Roth conversions up to the top of the 24% bracket both in 2021 and 2022. That of course will make my 2021 IRA contribution non-deductible. As I understand things, if I had left the contribution in the Traditional IRA, the matter would be simple: convert the entire Traditional IRA balance to Roth leaving a total Traditional IRA balance on 12/31/21 of $3. Modelling with Turbotax 2020 shows this works close to perfect (there's just a tiny IRA basis carried forward and that could either be ignored in future or eliminated in 2022 with another Roth conversion).
  8. HOWEVER: I can get money into the Traditional IRA by rolling over funds from either/both PAST-EMPLOYER 403b or/and CURRENT-EMPLOYER voluntary 403b. Let's say I transfer $100,000 giving me a Traditional IRA balance on 12/1/21 of $100,003. I can then do a Roth conversion on 12/2/21 of $100,000 taking me out of the 12% bracket and making the 2021 contribution non-deductible. Per TurboTax, it doesn't seem to matter where the converted $100,000 "came from" or whether it "includes" the 2021 contribution. Money is fungible. $7,000 went into the Traditional IRA in 2021; $7,000 plus came out of the Traditional IRA; in 2021; the balance of the Traditional IRA on 12/31/21 is $3. Turbotax treats the $7,000 as a non-deductible contribution making this a backdoor Roth. But I have to file Form 8606 because of the remaining $3.
My questions relate to whether this understanding is correct, whether there is a better strategy for dealing with things, and whether entering Form 8606-land is or isn't getting wrapped up in red tape for the rest of my investing life. My initial feeling about Form 8606 was to avoid it like the plague ... just cuz' nothing good can come from having to track IRA basis for the rest of my life. But the more I looked into the matter, the more it seemed my fear was unjustified. At worst I'd file 8606 in 2021 and 2022 and then never again. At best, I'd file it in 2021 only.

Now, what say you all? :confused
livesoft
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by livesoft »

You have created some anxiety in your mind about really nothing. You seem to have gotten hung up by the "backdoor" term which is really a shame.

One can convert traditional IRAs (whether deductible, non-deductible, or a combination) to a Roth IRA anytime one wants to. Form 8606 has to be filed for that no matter what combination that one does. Very simple.

For instance, I made tIRA conversions to Roth IRA when I had a combination of non-deductible and deductible traditional IRA contributions over the past 20+ years. The amounts were many thousands of dollars and into 6-figures total over the years. I just had my tax-prep software fill out Form 8606 properly. There was no "IRA Madnes" invovled at all. There really is no problem filing Form 8606 each year even if it goes on for 20+ years. After all, we don't see many posters too worried about filing Form 1040 every year, do we?
Last edited by livesoft on Sat Nov 20, 2021 10:18 am, edited 1 time in total.
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SuzBanyan
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by SuzBanyan »

Income from Roth conversions don’t count when determining if you are eligible make a Roth contribution. So your IRA contribution should remain deductible even if you convert $10000000 to your Roth.
Topic Author
JohnDoh
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by JohnDoh »

livesoft wrote: Sat Nov 20, 2021 10:05 am You have created some anxiety in your mind about really nothing. You seem to have gotten hung up by the "backdoor" term which is really a shame.

One can convert traditional IRAs (whether deductible, non-deductible, or a combination) to a Roth IRA anytime one wants you. Form 8606 has to be filed for that no matter what combination that one does. Very simple.

For instance, I made tIRA conversions to Roth IRA when I had a combination of non-deductible and deductible traditional IRA contributions over the past 20+ years. The amounts were many thousands of dollars and into 6-figures total over the years. I just had my tax-prep software fill out Form 8606 properly. There was no "IRA Madnes" invovled at all. There really is no problem filing Form 8606 each year even if it goes on for 20+ years. After all, we don't see many posters too worried about filing Form 1040 every year, do we?
Now that's the calm voice of sagacity that I love to hear ... . Thank you.
Topic Author
JohnDoh
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Joined: Sat Nov 30, 2013 10:28 am

Re: (Non)Deductible Traditional IRA Madness - please advise

Post by JohnDoh »

SuzBanyan wrote: Sat Nov 20, 2021 10:09 am Income from Roth conversions don’t count when determining if you are eligible make a Roth contribution. So your IRA contribution should remain deductible even if you convert $10000000 to your Roth.
OK. So you caught me being incomplete :oops: . I'm also contemplating recognizing other income in 2021 that by itself would make the 2021 IRA contribution non-deductible.

OTOH, based on what you say, perhaps an alternative new plan for 2021 would be to do the Roth conversion only this year.

But just to double-check I'm understanding you correctly: let's say I have $45,000 in ordinary income and $100,000 or $200,000 Roth conversion or whatever. The 2021 IRA contribution will remain deductible?

Thanks for your input.
livesoft
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by livesoft »

JohnDoh wrote: Sat Nov 20, 2021 10:17 amBut just to double-check I'm understanding you correctly: let's say I have $45,000 in ordinary income and $100,000 or $200,000 Roth conversion or whatever. The 2021 IRA contribution will remain deductible?
I would not trust what anyone tells me on this forum without verification from using tax-prep software. I buy tax-prep software around Thanksgiving, so that I can do some "What if?" scenarios for my tax return for the current year. Yes, I know that tax-prep software purchased around Thanksgiving will not be up to date until April or August of next year, but it will be good enough for the things I need to do before 12/31/this_year. I also realize that many folks like to have someone else do their taxes, so they will not be doing this. I cannot help them.
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retiredjg
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by retiredjg »

Ok. There is one thing that will simplify all this - if you do go through with this plan, convert the entire tIRA to Roth IRA. There is no reason to leave the $3 there and leaving it there just complicates things. Don't do that.

In your example, you would Roth convert $100,003 with a basis of $7,000...paying tax on $93,003.

I'm not sure if this procedure would receive the "seal of approval" from the IRS or not, but it does all turn out the same in the end. The same amount of tax will be paid as would have been paid had you known your original contribution would be non-deductible.

Right now, I can't think of any reason you should not do this if you are comfortable with it. The only difference in the end is that $7k is in a different 403b account than it would have been in and I don't see anything particularly improper about that. Maybe someone else will see something that I'm overlooking.

You will need the form 8606 to

1. Document your non-deductible contribution to IRA (Part I)

2. Document your Roth conversion (Part II).

There should be no reason to use the 8606 again unless you do another conversion in a future year.
retiredjg
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by retiredjg »

SuzBanyan wrote: Sat Nov 20, 2021 10:09 am Income from Roth conversions don’t count when determining if you are eligible make a Roth contribution. So your IRA contribution should remain deductible even if you convert $10000000 to your Roth.
I believe your first statement is correct. But the $100,000 Roth conversion definitely could make the contribution to tIRA non-deductible by making the MAGI too high to deduct.
SuzBanyan
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by SuzBanyan »

retiredjg wrote: Sat Nov 20, 2021 10:35 am
SuzBanyan wrote: Sat Nov 20, 2021 10:09 am Income from Roth conversions don’t count when determining if you are eligible make a Roth contribution. So your IRA contribution should remain deductible even if you convert $10000000 to your Roth.
I believe your first statement is correct. But the $100,000 Roth conversion definitely could make the contribution to tIRA non-deductible by making the MAGI too high to deduct.
You are correct. Roth conversions don’t count as part of MAGI to determine if one can make a Roth contribution. But conversions do count as MAGI to determine if a tIRA is deductible. Compare Worksheet 2.1 (Roth) to Worksheet 1.1 (tIRA) in IRS Publication 590-A.
jasonp99
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by jasonp99 »

spammagnet wrote: Sat Nov 20, 2021 1:47 am
jasonp99 wrote: Sat Nov 20, 2021 1:04 am... But, bad news, it looks like the pending Build Back Better Act, if passed, would prohibit any backdoor conversions:

Firstly, it would prohibit any after-tax contributions in 401(k) and other workplace plans and IRAs from being converted to Roth savings. This rule would apply to all income levels starting after Dec. 31, 2021.
Take care with discussions of pending legislation, to avoid thread lock.
Ahhh, good to know, did not know that. Thanks.
Topic Author
JohnDoh
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by JohnDoh »

An update and a big thank you to all:

I was able to follow both the practical and psychological advice offered above. Practically: I'd done the $7,000 Roth conversion, liquidated the lingering $3, and gotten my Traditional IRA balance to $0.00. Psychologically: I learned to stop worrying and love Form 8606.

You folks rock! Thank you thank you thank you. :sharebeer

FWIW, part of the source of my late season shift in strategy was this really excellent 21 Sep 2021 Bogleheads Chapter Series presentation by Wade Pfau:

Investing for Distribution in Retirement is Different from Acculumation

I feel like I'm going to be much better set for the coming decade and beyond after biting the bullet for one ugly tax year now.
GTBuzz
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by GTBuzz »

livesoft wrote: Sat Nov 20, 2021 10:22 am
JohnDoh wrote: Sat Nov 20, 2021 10:17 amBut just to double-check I'm understanding you correctly: let's say I have $45,000 in ordinary income and $100,000 or $200,000 Roth conversion or whatever. The 2021 IRA contribution will remain deductible?
I would not trust what anyone tells me on this forum without verification from using tax-prep software. I buy tax-prep software around Thanksgiving, so that I can do some "What if?" scenarios for my tax return for the current year. Yes, I know that tax-prep software purchased around Thanksgiving will not be up to date until April or August of next year, but it will be good enough for the things I need to do before 12/31/this_year. I also realize that many folks like to have someone else do their taxes, so they will not be doing this. I cannot help them.
I would actually warn against relying on tax-prep software for Form 8606 issues. I've found them all to be inconsistent in how they ask, how the end user might interpret, and how they calculate conversions when nondeductible contributions are involved. At least one just tells you to figure it out on your own, and put that figure in place of whatever is in box 2b of your 1099-R.
retiredjg
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by retiredjg »

Agree that getting your tax-software to do the right thing can be challenging. There are some blogs that will help.

One thing you need to do, JohnDoh, is figure out exactly what the Form 8606 should look like when finished. Specifically, what should be on line 1,2, 14, and 18.

Work through the form in pencil to be sure the taxable amount is correct. Then if you answer the questions "wrong" in the software (some are not intuitive) you will know something is wrong.

Do not be concerned if your software leaves lines. 6 - 12 blank if the taxable amount is correct. Some software does the work on a worksheet that is operating in the background.
Topic Author
JohnDoh
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by JohnDoh »

retiredjg wrote: Wed Nov 24, 2021 11:46 am Agree that getting your tax-software to do the right thing can be challenging. There are some blogs that will help.

One thing you need to do, JohnDoh, is figure out exactly what the Form 8606 should look like when finished. Specifically, what should be on line 1,2, 14, and 18.

Work through the form in pencil to be sure the taxable amount is correct. Then if you answer the questions "wrong" in the software (some are not intuitive) you will know something is wrong.

Do not be concerned if your software leaves lines. 6 - 12 blank if the taxable amount is correct. Some software does the work on a worksheet that is operating in the background.
Turbotax 2020 shows:

Line 1 (current year nondeductible contribution): $7,000
Line 2 (year start total basis in traditional IRAs): $0
Line 14 (year end total basis in traditional IRAs): $0
Line 18 (taxable amount): $0

Essentially, what seems to have happened is that this year's IRA contribution is treated as having been "backdoor recharacterized" from Traditional to Roth. The issue of earnings on the contribution seems to have been "solved" by simply having a current year-end Traditional IRA balance of $0.00.

That seems in line with the advice above and is what I want. (My story that I'd like to stick you :D ). Or am I missing something?
retiredjg
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by retiredjg »

JohnDoh wrote: Wed Nov 24, 2021 10:37 am Practically: I'd done the $7,000 Roth conversion, liquidated the lingering $3, and gotten my Traditional IRA balance to $0.00.
Wasn't your tIRA empty except for the $7? Where did this money come from so fast? And did you convert exactly $7k or $7,003?

What happened to the plan to convert $100k?
Topic Author
JohnDoh
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by JohnDoh »

retiredjg wrote: Wed Nov 24, 2021 12:22 pm
JohnDoh wrote: Wed Nov 24, 2021 10:37 am Practically: I'd done the $7,000 Roth conversion, liquidated the lingering $3, and gotten my Traditional IRA balance to $0.00.
Wasn't your tIRA empty except for the $7? Where did this money come from so fast? And did you convert exactly $7k or $7,003?

What happened to the plan to convert $100k?
1) The IRA BALANCE on 12/31/20 was $2.03. The IRA BASIS on 12/31/20 was $0.00 (unless I'm making a conceptual error; all prior contributions were deductible).
2) The IRA BALANCE in 12/31/21 will be $0.00.
3) I ran Turbotax 2020 on a 1099-R for $7,000 and also for higher numbers. I reported the former (unclearly I think). When I run TT for higher numbers, it shows only the amount above $7,000 as taxable. E.g. for an additional $10,000 (total $17,000) $10,000 ends up on line 15c. TT doesn't put anything in Part II. Perhaps I missed something beyond putting code 2 in box 7 of the 1099. In any case, I'm assuming that since this year's nondeductible contribution seems to be handled OK, only the overage will be taxed.
4) But perhaps this is confirming GTBuzz's point that the software isn't doing a 100% perfect job. The taxable amount is correct but the form is not filled out right. Does that make sense?
retiredjg
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Re: (Non)Deductible Traditional IRA Madness - please advise

Post by retiredjg »

I don't think you are answering the questions right. Part II should be filled in and I don't think line 15 should be involved at all.

See if this blog helps.

https://thefinancebuff.com/how-to-repor ... botax.html


However, I was asking you where you got the money to put into tIRA to do the $7k Roth conversion you said you did. It seems to have happened too quickly to have come from your 403b. And the $3 (or was it $2?) should not just disappear. Something seems off.
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