The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/i-contributed-to-2012-ira-in-jan-2013-and-after-30598696.aspx

Subject:  Re: Non-deductible IRA Date:  3/20/2013  1:06 PM
Author:  Wradical Number:  118088 of 121480

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.

Bill
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us