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Here's my story, and would appreciate any help with this messiness...doing my taxes with Turbotax and getting stumped on the IRA stuff.
12/31/15: TIRA Cost Basis $5,402.87 (initial contribution of $5K in 2012)
1/15/16: Started obsessively reading WCI and learn about Backdoor Roth & individual retirement plans for my 1099 income
2/1/16: Made late contribution to TIRA for 2015 ($5,500)
4/8/16: Rolled over entire TIRA to Roth IRA ($12,136)
4/8/16: Made late pretax contribution to SEP-IRA for 2015 ($2,000)
4/25/16: Realized SEP-IRA will mess up my Backdoor Roth and rollover SEP-IRA into solo 401K ($2,000)
5/17/16: Made on-time contribution to TIRA for 2016 ($5,500)
5/20/16: Converted entire TIRA to Roth IRA ($5,500)
I received 2 1099-Rs for 2016:
TIRA: 1-Gross Distr $17,636, 2a-Taxable Amt $17,636, 2b-Taxable amt not determined, 7-Distr Code (2) Early distr, IRA/SEP/SIMPLE checked
SEP-IRA: 1-Gross Distr $2,000, 2a-Taxable Amt $0 Total Distr checked, 7-Distr Code (G) Direct rollover, IRA/SEP/SIMPLE checked
My 2015 Form 8606:
1: $5550
2: 0
3: $5500
4-13: $0
14: $5500
16-25: $0
My 2016 Form 8606 (so far):
1: $5500
2: 0
3: $5500
4: 0
5: $5500
6-12: 0
13: $5500
14-15: 0
16: $17636
17: $5500
18: $12136 (taxable amount)
If you are still reading, bless your heart! But my questions are the following:
1- Am I getting "double taxed" (line 18) for 2016? I thought I would only be taxed for the $5K+ that was in my TIRA at the end of 2015. But it looks like I'm being taxed for my old TIRA contribution + my 2015 contribution (which was after-tax money and not deducted on my 2015 taxes). Did I fill out my 2015 form incorrectly and that's why my 2016 form is getting messed up?
2- My SEP-IRA to solo-401k rollover should not be taxed since it is rolling over money from one pre-tax account to another, right?
Thank you in advance for all your help!
12/31/15: TIRA Cost Basis $5,402.87 (initial contribution of $5K in 2012)
1/15/16: Started obsessively reading WCI and learn about Backdoor Roth & individual retirement plans for my 1099 income
2/1/16: Made late contribution to TIRA for 2015 ($5,500)
4/8/16: Rolled over entire TIRA to Roth IRA ($12,136)
4/8/16: Made late pretax contribution to SEP-IRA for 2015 ($2,000)
4/25/16: Realized SEP-IRA will mess up my Backdoor Roth and rollover SEP-IRA into solo 401K ($2,000)
5/17/16: Made on-time contribution to TIRA for 2016 ($5,500)
5/20/16: Converted entire TIRA to Roth IRA ($5,500)
I received 2 1099-Rs for 2016:
TIRA: 1-Gross Distr $17,636, 2a-Taxable Amt $17,636, 2b-Taxable amt not determined, 7-Distr Code (2) Early distr, IRA/SEP/SIMPLE checked
SEP-IRA: 1-Gross Distr $2,000, 2a-Taxable Amt $0 Total Distr checked, 7-Distr Code (G) Direct rollover, IRA/SEP/SIMPLE checked
My 2015 Form 8606:
1: $5550
2: 0
3: $5500
4-13: $0
14: $5500
16-25: $0
My 2016 Form 8606 (so far):
1: $5500
2: 0
3: $5500
4: 0
5: $5500
6-12: 0
13: $5500
14-15: 0
16: $17636
17: $5500
18: $12136 (taxable amount)
If you are still reading, bless your heart! But my questions are the following:
1- Am I getting "double taxed" (line 18) for 2016? I thought I would only be taxed for the $5K+ that was in my TIRA at the end of 2015. But it looks like I'm being taxed for my old TIRA contribution + my 2015 contribution (which was after-tax money and not deducted on my 2015 taxes). Did I fill out my 2015 form incorrectly and that's why my 2016 form is getting messed up?
2- My SEP-IRA to solo-401k rollover should not be taxed since it is rolling over money from one pre-tax account to another, right?
Thank you in advance for all your help!