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backdoor IRA and tax

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  • backdoor IRA and tax

    I contacted Fidelity and moved my 3.7k (pre-tax) from traditional IRA to Roth IRA (will pay tax next tax season on this sum)

    Also deposited 6.5 k (I am 50 yo) to traditional IRA  and will transfer tomorrow to Roth IRA (for 2016)

    Planning to do the same for 2017

    I already did my tax for 2016

    Q; Do I need to make any amendment now (? form 8606) or I can report everything on 8606 next year?

  • #2
    You need to file an 8606 for 2016 for the nondeductible TIRA contribution for 2016. You do not have to file the full amended return. You will fill out the front side only.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Which one in non-deductible: 3.7 k pre-tax that I had already or 6.5 k ?

      FYI: 3.7 k were transferred to my traditional IRA in 2017 (I opened traditional IRA in 2017)

      Comment


      • #4
        I had no IRA (any) account at all in 2016

        Comment


        • #5




          Also deposited 6.5 k (I am 50 yo) to traditional IRA  and will transfer tomorrow to Roth IRA (for 2016)
          Click to expand...


           
          Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

          Comment


          • #6
            Johanna, there is no message/post ... I do not see any...

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            • #7
              You posted that you did not have a 2016 IRA and i quoted your prior post stating that you were making a 2016 IRA contribution.


              I had no IRA (any) account at all in 2016 lmk1966
              Click to expand...




              Also deposited 6.5 k (I am 50 yo) to traditional IRA  and will transfer tomorrow to Roth IRA (for 2016)
              Click to expand...


               
              Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

              Comment


              • #8
                sorry.., but it is still not clear for me..

                Even if I had no money/account  wit ANY IRA in 2016, do I have to fill out 8606 now?

                I got different information from sources. Some are saying that next tax season I will file 8606 and show 13K (6.5k+6.5k) and 3.7k and ...

                then next year I will pay tax on 3.7k.

                I already checked IRS site which are not very clear (to me) but it is said that penalty is $50 for not filling 8606.

                It is not big deal but I do not want to have any problems

                Comment


                • #9
                  If you make the TIRA contribution *for* 2016, you have to file an 8606 *for* 2016, even if you made it *in* 2017.

                  Where is this $3,700 coming from if you didn't have any IRAs? I'm confused.

                  The 8606 for 2016 will just show your non-deductible contribution *for* 2016, no conversions, if there were no other IRAs in 2016. It would just be $6,500 on lines 1,3,4,14 and zero everywhere else.

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                  • #10
                    3.7k comes as transfer to my TIRA from my deceased husband account (transfer to my TIRA account performed on 01/10/17)

                    Comment


                    • #11
                      Fill out 8606  (based on my earlier post)...Does it look right ?

                      Comment


                      • #12
                        Johanna,

                        this is how my transfer look on Fidelity site
















                        IRA- TFR FROM SPOUSE VS 226-187125-1 (Cash)


                        Close Popup









                        Amount $3,722.83



                        If I fill out 8606 form for 2016, do I show 3.7k and 6.5 k ?

                        Or 3.7k considered "inherited money" and do not have to be put on 8606?


                        thanks

                        Comment


                        • #13
                          Line 6 is only money that was in IRAs on 12/31/2016, so if you didn't have it until January 2017, then it should be $0.

                          Comment


                          • #14
                            You are moving the inherited IRA into your own name, correct? (That is what you should do). When you convert to a Roth IRA, you will report the amount you convert on page 2 of Form 8606.

                            The $6,500 is all that goes on the 8606 for this year given what you've posted so far. Sorry for the delay, I've been reviewing tax returns and in appts all day.
                            Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

                            Comment


                            • #15
                              When do I report 3.7k ? (inherited from my husband account and deposited to my TIRA on 1/10/17)

                              I converted it to Roth IRA for 2016 on 3/10/17

                               

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