rbynaker
Level 13
03-18-2021
04:20 PM
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Contributions can happen retroactively, conversions cannot.
For 2020 you have non-deductible IRA contributions reported on Forms 8606 (one for TP, one for SP). For 2021 you'll have a 1099-R to report as a Roth IRA conversion. For now your 8606 forms will "end" with $7,000 of basis. Next year that basis carries forward and will get applied to the distribution, making it non-taxable (again, on the Form 8606 but in a different section).