Form 8606 help understanding basis
Hello,
In 2020, I opened a traditional IRA and a Roth IRA. Following is the timeline of my transactions:
No prior amounts in traditional IRA or Roth IRA
Calendar year 2020: Contributed 6k for tax year 2019 to traditional IRA and converted to Roth IRA
Calendar year 2021: Contributed 6k for tax year 2020 and 6k for tax year 2021 to traditional IRA and converted all to Roth IRA
For form 8606, my basis information was:
2019 form: Line 2=0, Line 14=6k
2020 form: Line 2=6k, Line 14=6k
Was this correct?
I’m filling out my form 8606 for 2021, and my basis information is:
2021 form: Line 2=6k, Line 14=0
Is this correct?
Thanks
Permalink Submitted by Alan - IRA critic on Fri, 2022-03-04 23:47
2019 8606 – Line 1 6k; Line 3 6k; Line 14 6k.
2020 8606 – Line 1 6k; Line 2 6k; Line 3 12k; Line 4 6k; Line 5 6k; Complete rest of Part I which will include 6k on line 14 plus other lines and complete Part II. Part II should show 6k Line 16; 6k Line 17; 0 Line 18.
2020 8606 may be incomplete; before proceeding correct the 2020 8606 and file corrected 2020 8606 and file with IRS. You may need to amend your 2020 return.
2021 8606 – Line 1 6k; Line 2 6k; Line 3 12k; Complete rest of Part I including 0 in line 14 and complete Part II including 12k on line 16; 12k on line 17, and 0 on 18. Perhaps you did complete the rest of Part I for 2020 and 2021 and are just asking about selected lines.
Permalink Submitted by Ding Dong on Sat, 2022-03-05 00:29
Thank you for your prompt and clear response. I did complete the forms in full but was trying to validate and reconcile those specific lines. They reconciled just fine.