I just had a question about fixing mistakes on 8606. I have done backdoor Roths since 2018, but due to not reading the instructions I believe I have made just about every error on them possible and am just now realizing this. I was hoping someone would be able to tell me if I have corrected my 8606 forms appropriately. This is what I did:
Nov 2018 – Traditional IRA contribution of 5500, bought VTSAX which lost value before conversion
Dec 2018 – Converted the new value of 4820.28 to Roth
12/31/18 traditional IRA value: 0
Basis: 680
Dec 2019 – Traditional IRA contribution of 6000, left in settlement fund
12/31/19 traditional IRA value: 6000.51
Basis 6680?
Feb 2020 – Converted 6000 to Roth (for year 2019)
April 2020 – Traditional IRA contribution of 6000, left in settlement fund
July 2020 – Converted 6000 to Roth
12/31/20 traditional IRA value: 17.12
Basis: 12680?
These are what I originally put in TurboTax but with my hand corrections for 2018 and 2019. Have I redone these correctly? I think that I will just need to file a correction to the 8606 for 2019 if so. And if I’m understanding what is going on, is the fact that I lost money before conversion the first year keeping me from incurring the pro rata rule? Thanks so much in advance for any help and for all this board does.
Nov 2018 – Traditional IRA contribution of 5500, bought VTSAX which lost value before conversion
Dec 2018 – Converted the new value of 4820.28 to Roth
12/31/18 traditional IRA value: 0
Basis: 680
Dec 2019 – Traditional IRA contribution of 6000, left in settlement fund
12/31/19 traditional IRA value: 6000.51
Basis 6680?
Feb 2020 – Converted 6000 to Roth (for year 2019)
April 2020 – Traditional IRA contribution of 6000, left in settlement fund
July 2020 – Converted 6000 to Roth
12/31/20 traditional IRA value: 17.12
Basis: 12680?
These are what I originally put in TurboTax but with my hand corrections for 2018 and 2019. Have I redone these correctly? I think that I will just need to file a correction to the 8606 for 2019 if so. And if I’m understanding what is going on, is the fact that I lost money before conversion the first year keeping me from incurring the pro rata rule? Thanks so much in advance for any help and for all this board does.
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