joshuabarksatlc s
Level 10
03-19-2022
06:29 PM
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RE: Well, except that the $6000 for tax year 2020 should be on the 2020 tax return.
Just wanted to clarify as follows:
In @TaxGuyBill 's scenario, $6K should be reported as non-deductible IRA on the 2020 return and $6K on the 2021 return. The basis upon conversion from the said contributions would be $12K on the 2021 return.
If the $6K was NOT reported as non-deductible IRA on the 2020 return, some would suggest to amend it, but that would be a different consideration.
In this scenario, the BEGINNING basis of the IRA for 2021 should include the $6K. (Check if there had been other non-deductible IRA contributions made in prior years.) Upon the conversion, the basis should be $12K.
I come here for kudos and IRonMaN's jokes.