Personal Finance (Not Investing) • Which 1099R distribution code will appear on Line 7 when both Roth Conversion and Backdoor Roth done in the same year

Understand there is no such thing as a back door Roth as far as the IRS is concerned. Understand that your 1099 and the amount in box 2a says nothing about how much is taxable. Understand that the contribution and conversion are two separate actions for tax purposes not one process.

You did conversions from a traditional to a Roth IRA for $56501. You could have converted it all in one day instead of two different days and the tax consequences would be the same. You could have converted any number of times in any amounts in any order and it is all the same just like the tax code does not care how many paychecks you received only the total wages for the year.

You also made a contribution of $6500. This contribution is apparently non deductible for you. This contribution will be reported on the Form 8606. This is true whether converted or not. You report the contribution. If you are not eligible to deduct the contribution because of your high income and participation in a workplace retirement plan, Turbotax will automatically fill out Form 8606 Part 1 to report the contribution as non deductible.

Statistics: Posted by Katietsu — Sat Jan 13, 2024 5:12 am — Replies 14 — Views 1289

---