Can you please advise me how to proceed on this Backdoor screwup?
1. Spouse's 2016 Roth IRA contribution was 5500, as evidenced on Vanguard 2016 form 5498
2. In Jan 2017, realized we were OVER income limit. I thus recharacterized this to spouse's traditional IRA. I received a 1099R in January 2018 for $6381. At that time, since spouse had a SEP IRA, I did not want to deal with pro rata rule so I left it in the tIRA. However, I do not think I filed an 8606 (I looked back into my IRS archives via online transcript request, and only see a 2017 8606 for myself, not my spouse, so I can only assume I filed to file the 8606).
3. Thus, it remained in tIRA until Jan 2020 when I decided to fix this issue. I CONVERTED the entire tIRA balance which was $7319. I also simultaneously converted the entire SEP-IRA balance which was $7047. so now my total tIRA balance and SEP-IRA balance, as of 12/31/2020, was $0.
Questions:
1. So for 2020, I have $14366 of distributions, on a presumed basis (from 2017) of $5500, correct?
2. MUST I file a 2017 8606? OR can I just file the 2020 8606 on TurboTax and state that my basis was 5500?
3. If answer to #2 is yes, Just to confirm that I need to file a 2017 8606, not a 2016 8606? The Roth contribution was 5500 and the tIRA conversion was in 2017.
4. Do I just need to file a single 8606 for my spouse and send it to the IRS with a cover letter stating this error and a check for $50? If so, where exactly do I mail it (I cant find the address online)? As in, i do not need to fill in an identical 8606 for 2018 and 2019 since I did not do any recharacterizations or tIRA contributions in those yeas?
5. Does line1 of 8606, even though it says 'Enter your nondeductible contributions to traditional IRAs for 2017', does 'contribution' also include a Roth contribution that was 'converted' to the tIRA?
6. As for filling out form 8606 itself please verify:
Line 1. 5500
line 2. 0
line 3 5500
line 4 0
line 5 5500
line 6 13922.54 (7128 tIRA + 6793 SEP-IRA)
line 7 0
line 8 0
line 9 13922.54
line 10 0.395
line 11. 0
line 12. 0
line 13. 0
line 14. 5500
line 15a. 0
line 15b. 0
1. Spouse's 2016 Roth IRA contribution was 5500, as evidenced on Vanguard 2016 form 5498
2. In Jan 2017, realized we were OVER income limit. I thus recharacterized this to spouse's traditional IRA. I received a 1099R in January 2018 for $6381. At that time, since spouse had a SEP IRA, I did not want to deal with pro rata rule so I left it in the tIRA. However, I do not think I filed an 8606 (I looked back into my IRS archives via online transcript request, and only see a 2017 8606 for myself, not my spouse, so I can only assume I filed to file the 8606).
3. Thus, it remained in tIRA until Jan 2020 when I decided to fix this issue. I CONVERTED the entire tIRA balance which was $7319. I also simultaneously converted the entire SEP-IRA balance which was $7047. so now my total tIRA balance and SEP-IRA balance, as of 12/31/2020, was $0.
Questions:
1. So for 2020, I have $14366 of distributions, on a presumed basis (from 2017) of $5500, correct?
2. MUST I file a 2017 8606? OR can I just file the 2020 8606 on TurboTax and state that my basis was 5500?
3. If answer to #2 is yes, Just to confirm that I need to file a 2017 8606, not a 2016 8606? The Roth contribution was 5500 and the tIRA conversion was in 2017.
4. Do I just need to file a single 8606 for my spouse and send it to the IRS with a cover letter stating this error and a check for $50? If so, where exactly do I mail it (I cant find the address online)? As in, i do not need to fill in an identical 8606 for 2018 and 2019 since I did not do any recharacterizations or tIRA contributions in those yeas?
5. Does line1 of 8606, even though it says 'Enter your nondeductible contributions to traditional IRAs for 2017', does 'contribution' also include a Roth contribution that was 'converted' to the tIRA?
6. As for filling out form 8606 itself please verify:
Line 1. 5500
line 2. 0
line 3 5500
line 4 0
line 5 5500
line 6 13922.54 (7128 tIRA + 6793 SEP-IRA)
line 7 0
line 8 0
line 9 13922.54
line 10 0.395
line 11. 0
line 12. 0
line 13. 0
line 14. 5500
line 15a. 0
line 15b. 0
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