g**********i
发帖数: 9 | 1 I contributed $5.5K non deductible money directly into Roth IRA in 2018. In
April 2019 before 4/15 I recharacterized $6.2K ($5.5K + $0.7K earnings) into
Traditional, then immediately rollover to Roth.
I have two questions:
1) My understanding is earning is taxable. But should I calculate earning by
the time of recharacterization ($700) or 2018 Year End?
2) I did not have a 2018 1099-R because the rechar and backdoor conversion
happened in 2019. I should owe that tax? how do I report it in 2019? Do I
need to amend my 2018 1040? Or Do I submit a 8606? |
f*******n
发帖数: 12623 | 2 Recharacterization means that you pretend as if the contribution was
originally made to the other type of account. So for tax purposes, you treat
it as if you made a $5.5k non-deductible contribution to Traditional IRA in
2018 and the converted $6.2k from Traditional IRA to Roth IRA in 2019.
You need to file 2018 form 8606 part 1 for the non-deductible Traditional
IRA contribution, but you don't need to fill out part 2 since you didn't
make a Roth IRA conversion in 2018. You need to amend your 2018 tax return
if you didn't file the 8606. The 8606 will show that you have $5.5k basis in
Traditional IRA.
Since the conversion was in 2019, you will get a 2019 1099-R, and you will
report the conversion on 2019 form 8606 part 2. The conversion will be based
on 2019 amounts. If you do not contribute or rollover amounts into
Traditional IRA in the rest of 2019, the taxable amount will be the $6.2k
converted - $5.5k basis = $0.7k.
Of course, we are in the middle of 2020 now so you should already have
gotten the 2019 1099-R. |
g**********i
发帖数: 9 | 3 THANK YOU!!! You are my hero
So for 2018 8606, am I doing it right?
Line 1: $5500 (even though I rechar later in 2019 $6.2K)
Line 2: 0
Line 3: $5500
Line 4: $5500
all 0's thereafter
Line 14: $5500
treat
in
in
【在 f*******n 的大作中提到】
: Recharacterization means that you pretend as if the contribution was
: originally made to the other type of account. So for tax purposes, you treat
: it as if you made a $5.5k non-deductible contribution to Traditional IRA in
: 2018 and the converted $6.2k from Traditional IRA to Roth IRA in 2019.
: You need to file 2018 form 8606 part 1 for the non-deductible Traditional
: IRA contribution, but you don't need to fill out part 2 since you didn't
: make a Roth IRA conversion in 2018. You need to amend your 2018 tax return
: if you didn't file the 8606. The 8606 will show that you have $5.5k basis in
: Traditional IRA.
: Since the conversion was in 2019, you will get a 2019 1099-R, and you will
|
f*******n
发帖数: 12623 | |
g**********i
发帖数: 9 | 5 THANK YOU!!! You are my hero
So for 2018 8606, am I doing it right?
Line 1: $5500 (even though I rechar later in 2019 $6.2K)
Line 2: 0
Line 3: $5500
Line 4: $5500
all 0's thereafter
Line 14: $5500
treat
in
in
【在 f*******n 的大作中提到】
: Recharacterization means that you pretend as if the contribution was
: originally made to the other type of account. So for tax purposes, you treat
: it as if you made a $5.5k non-deductible contribution to Traditional IRA in
: 2018 and the converted $6.2k from Traditional IRA to Roth IRA in 2019.
: You need to file 2018 form 8606 part 1 for the non-deductible Traditional
: IRA contribution, but you don't need to fill out part 2 since you didn't
: make a Roth IRA conversion in 2018. You need to amend your 2018 tax return
: if you didn't file the 8606. The 8606 will show that you have $5.5k basis in
: Traditional IRA.
: Since the conversion was in 2019, you will get a 2019 1099-R, and you will
|
h*****n
发帖数: 49 | 6 好奇这样做的目的是什么呢？为啥用recharacterize？
In
into
by
【在 g**********i 的大作中提到】
: I contributed $5.5K non deductible money directly into Roth IRA in 2018. In
: April 2019 before 4/15 I recharacterized $6.2K ($5.5K + $0.7K earnings) into
: Traditional, then immediately rollover to Roth.
: I have two questions:
: 1) My understanding is earning is taxable. But should I calculate earning by
: the time of recharacterization ($700) or 2018 Year End?
: 2) I did not have a 2018 1099-R because the rechar and backdoor conversion
: happened in 2019. I should owe that tax? how do I report it in 2019? Do I
: need to amend my 2018 1040? Or Do I submit a 8606?
|
f*******n
发帖数: 12623 | 7 直接存Roth IRA有收入限制。lz收入太高，不能直接存Roth IRA。
【在 h*****n 的大作中提到】
: 好奇这样做的目的是什么呢？为啥用recharacterize？
:
: In
: into
: by
|
