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Financial Planning / Tax Strategies
|Subject: Re: Non-deductible IRA||Date: 3/20/2013 1:06 PM|
|Author: Wradical||Number: 118088 of 121261|
I contributed to 2012 IRA (in Jan 2013) and after finishing the taxes realized I cannot deduct the amount from my taxes due to high AGI. I withdrew the money from my IRA.What forms do I have to file with IRS?I didnt receive any forms from my financial institute and was told I will receive the 1099-R in Jan 2014
Well, if you had asked first, you might have been advised that you could just leave the money there, and classify it as a nondeductible IRA. And you also could have converted the account to a Roth IRA, regardless of your income. (This is what's known as a back-door Roth contribution.)
And you still have unti April 15 to re-do it, with either option still available. And amending your return won't be necessary.
Did you include a Form 8606 with your return? You should have. Either way you made a nondeductible IRA contribution for 2012, and you're going to get a 1099-R for 2013. The withdrawal in 2013 will be nontaxable.
I think this is the case where you can file a Form 8606 by itself, without an amended return. But you do have to sign the form when doing that.
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