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reporting late backdoor Roth question (form 1040)

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  • reporting late backdoor Roth question (form 1040)

    Hi,

    I have to report a late backdoor Roth this year and would love some help. More specifically, in January 2021 I contributed $6,000 2020 and another $6,000 for 2021. I have seen the lifesaving tutorial Dr Dahle has posted (https://www.whitecoatinvestor.com/ba...tutorial/#late) with all the details details regarding filling form 8606, but I have a question regarding form 1040.
    Should I have line 4a (IRA distributions) $0 for 2020 and $12,000 for 2021? (I have zero for line 4b (taxable IRA distributions) for both years).
    (I got this values using the downloadable version of turbotax, in case it makes any difference)

    Thank you!

    Best,
    nathan

  • #2
    That is not a late backdoor, otherwise you would have to remove the amount of late contribution (the title of your thread gave me a start). So you contributed for both 2020 and 2021 in Jan 2021 and converted in 2021. You were timely in all respects.

    You are correct that P2 of your 2021 Form 8606 will reflect your $12k conversion. P1 of both your 2020 8606 and 2021 8606 will report your $6k nondeductible TIRA contributions. And blank 4a on your 1040 for 2021 will contain $12k, blank 4b will be $0. Of course, this presumes you didn’t earn a dollar or two of interest, in which case 4a will be higher by the interest, which will be added to your taxable income for 2021, in blank 4b.
    Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      Thank you SO much! and sorry if I called my situation by the wrong name

      best,
      nathan

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      • #4
        Originally posted by nathanfrenk View Post
        Thank you SO much! and sorry if I called my situation by the wrong name

        best,
        nathan
        No apologies needed, just clarifying for you and others. We’re all learning here, happy to help.
        Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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