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1099-R question with TSP & Backdoor Roth

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  • gap55u
    replied
    Thank you— — I am on track. I haven’t stepped through the ira contribution & basis portions of TurboTax but I understand what I need to answer. I’ve got my 4 1099-r’s entered (move 3 accounts to 401k, rollover the nondeductible portion to Roth)

    And, yes, I had been tracking 8606 for me and my wife. At least I did something right, huh?

    It seems like the 5498 isn’t an issue.

    Leave a comment:


  • spiritrider
    replied
    Not DMFA, but the fact that you made no non-deductible IRA contributions in 2017 changes the Form 8606 reporting. Your Form 8606 should show $16,500 prior basis, $0 contribution, $0 12/31/2017 Trad/SEP/SIMPLE balance, $16,500 converted, 1.000 non-taxable portion, and $0 tax due.

    Hopefully, you reported the previous three (3) $5,550 non-deductible contributions and accumulating basis on prior 8606 forms. If not you should get those submitted immediately and separate from your return. Then I suggest you wait until at least 4/1 to file your return.

    Also, you should report the $19,000 TSP rollover on Form 1040 line 16a, $0 in Line 16b taxable amount and either you if filing manually or the tax software should enter rollover in the space to the right of the "taxable amount" label.

    Leave a comment:


  • gap55u
    replied
    @DFMA -

    I have the 1099-R's and 8606. I didn't do nondeductible Trad IRA contributions in 2017.

    Schwab tells me form 5498 doesn't come out until May.  Does this mean I should file an extension and wait until May, given all of the activity?  I think I'm able to answer the underlying question - what is the total value of traditional IRA/SEP/Simple (turbotax specifically asks for this) - without the 5498.

    Frustratingly, when I transferred earnings out and did the backdoor roth, a random $1.21 was left in the nondeductible account on 12/31/17. I have done a backdoor roth IRA for 2018 already, and it's now got 3 cents in it. I know to ignore that, round down.

     

     

    Leave a comment:


  • DMFA
    replied




    That seems easier than expected.  I figured that since I’d have 1099-R’s for 19,000 (to TSP) + 16,500 (backdoor roth) the IRS would wonder about the 16500 that wasn’t on a 1099-R.
    Click to expand...


    It will be explained by the form 5498s furnished to them by the custodian and by your form 8606. And if not, and they ask you, just tell them.

    Leave a comment:


  • gap55u
    replied
    That seems easier than expected.  I figured that since I'd have 1099-R's for 19,000 (to TSP) + 16,500 (backdoor roth) the IRS would wonder about the 16500 that wasn't on a 1099-R.

    Leave a comment:


  • DMFA
    replied




    I’m trying to figure out 1099-R’s and tax time. I was hoping to do Turbotax rather than an accountant.  In doing a backdoor Roth, things got screwed up. (my former financial advisor and I are to blame)

    16500 nondeductible contributions. 2500 earnings.  BOTH sent to TSP. they can’t take nondeductible contributions. They eventually return the 16500.

    My brokerage gives me a 1099-R for the full 1900.

    The nondeductible contributions of 16500 went to a backdoor roth.

    I have another 1099-R for the 16500.

    Doesn’t it seem like they should correct the 1900 to a 2500?  I already asked the TSP, and they will not be issuing a form for the returned 16500.

    Assistance/recommendations appreciated!

     
    Click to expand...


    I'm guessing you mean $19,000, since that's $16,500 + $2,500?

    No, because technically the whole thing *was* distributed from the IRA, then $16,500 was put back into Traditional, then another $16,500 was distributed by way of conversion from Traditional to Roth.  The "Taxable amount not determined" box within Box 2b on 1099-R should be checked.  That means that it's up to you to determine what's taxable...which should be zero, because everything converted to Roth was non-deductible and everything pretax was rollover'd to pretax TSP.

    Your form 8606 would show $11,000 prior basis, $5,500 contribution, $0 12/31/2017 Trad/SEP/SIMPLE balance, $16,500 converted, 1.000 non-taxable portion, and $0 tax due.

    Leave a comment:


  • gap55u
    started a topic 1099-R question with TSP & Backdoor Roth

    1099-R question with TSP & Backdoor Roth

    I'm trying to figure out 1099-R's and tax time. I was hoping to do Turbotax rather than an accountant.  In doing a backdoor Roth, things got screwed up. (my former financial advisor and I are to blame)

    16500 nondeductible contributions. 2500 earnings.  BOTH sent to TSP. they can't take nondeductible contributions. They eventually return the 16500.

    My brokerage gives me a 1099-R for the full 1900.

    The nondeductible contributions of 16500 went to a backdoor roth.

    I have another 1099-R for the 16500.

    Doesn't it seem like they should correct the 19000 to a 2500?  I already asked the TSP, and they will not be issuing a form for the returned 16500.

    Assistance/recommendations appreciated!

     
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