Announcement

Collapse
No announcement yet.

Roth conversion mistake? Help please

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Roth conversion mistake? Help please

    Early January 2018 was when I opened my first non-deductible tIRA and performed a Roth conversion about a week later. When I contributed to my tIRA, I selected to contribute for the tax year 2017 ($5500, did not contribute for the 2018 tax year), but did the conversion in 2018. Probably an oversight on my part but I did not have my tax guy report this.

     

    I am planning to contribute the full $5,500 for 2018, as well as the full $6,000 for 2019 on Jan 1st, 2019 and then convert to Roth so that I'm caught up. However, I'm concerned about how to properly report this. I was reading the article "Late Contributions to the Backdoor Roth IRA" on this site but am still a little confused about how to properly account for the contribution I made in 2018 for the 2017 tax year, and how that factors in to my filing for the 2018 tax year and in the future once I'm caught up and contribution & conversion occur in the same year.

     

    This is probably a pretty basic topic for a lot of posters, but I'm not very well-versed in the tax world so any information would be very helpful. Thanks everyone!

  • #2
    You need to complete and file a form 8606 for 2017. Assuming you did not take a deduction on your 2017 return for the contribution you don’t need to file an amended return. Just the 8606.

     

    You will I’ll need to file 8606 with 2018 return as well, showing the conversion.

     

    You dont need to wait to do your 2018 contribution and conversion until 1/1/19. You could do that now.

    Comment


    • #3


      You dont need to wait to do your 2018 contribution and conversion until 1/1/19. You could do that now.
      Click to expand...


      My understanding was that you could only do one conversion per year. Is that incorrect?

      Comment


      • #4




        My understanding was that you could only do one conversion per year. Is that incorrect?
        Click to expand...


        you can do unlimited # of conversions.

         

        Comment


        • #5





          You dont need to wait to do your 2018 contribution and conversion until 1/1/19. You could do that now. 
          Click to expand…


          My understanding was that you could only do one conversion per year. Is that incorrect?
          Click to expand...


          incorrect.

          there is a one rollover per year rule https://www.irs.gov/retirement-plans/ira-one-rollover-per-year-rule

          but I'm unaware of any rule on number of conversions

          Comment


          • #6








            You dont need to wait to do your 2018 contribution and conversion until 1/1/19. You could do that now. 
            Click to expand…


            My understanding was that you could only do one conversion per year. Is that incorrect?
            Click to expand…


            incorrect.

            there is a one rollover per year rule https://www.irs.gov/retirement-plans/ira-one-rollover-per-year-rule

            but I’m unaware of any rule on number of conversions
            Click to expand...


            Great to know, thanks!

            Comment


            • #7








              You dont need to wait to do your 2018 contribution and conversion until 1/1/19. You could do that now.
              Click to expand…


              My understanding was that you could only do one conversion per year. Is that incorrect?
              Click to expand…


              incorrect.

              there is a one rollover per year rule https://www.irs.gov/retirement-plans/ira-one-rollover-per-year-rule

              but I’m unaware of any rule on number of conversions


              Conversions are unlimited fyi, as are transfers and rollovers.
              Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

              Comment

              Working...
              X