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Financial Planning / Tax Strategies
|Subject: Re: Converted Just One of Two IRAs to a Roth||Date: 7/23/2013 3:25 PM|
|Author: IMBonzi||Number: 118909 of 125707|
In 2012 you did a conversion from traditional IRA to Roth IRA.
- I am embarrassed to say that I just reread my original post to discover I had omitted stating that both my nondeductible 2012 IRA contribution and the conversion to my Roth were transacted in February, 2013.
In 2013 you recharacterized that 2012 conversion and the earnings on it back to your traditional IRA.
- Yes. The recharacterization transaction went through on April 16, 2013. Then in June, 2013, I again converted the entire IRA (2012 contribution + earnings) to my Roth.
You seem to be having some TurboTax problems with a penalty it's generating on your 2012 return.
You should have received one 2012 1099-R. Box 1 should be the amount converted from traditional IRA to Roth IRA. Please advise what the code in Box 7 is. There should be no other 2012 1099-R's in your possession. Please advise if this is wrong, along with all details from the "new" 1099-R('s).
- I received no 1099-R for 2012, and assume I will receive one in January, 2014 for the 2012 IRA contribution that I did not make until February, 2013
At this point is there no need for a Form 8606 on your 2012 return. You attach a statement describing the recharacterization in accordance with the instructions for Form 8606. Line 15a of your 1040 is equal to Box 1 of the 1099-R. Line 15b of your 1040 is zero. Line 58 of the 1040 should be zero. Please advise of anything that doesn't meet this description.
- Under the circumstances, am I right in thinking I should report my 2012 IRA nondeductible contribution made in February, 2013, on my 2012 Form 8606? I have tentatively entered the contribution on Form 8606 as follows: Lines 1, 5000; 2, 0; 3, 5000; 4, 5000 5, 0; 14, 5000.
I'm unsure what, if any, IRA contribution you made for tax year 2012. Please advise, including whether the contribution was made to your traditional or Roth IRA (if a contribution for that year was made) and when it was made.
- For tax year 2012, I made my maximum allowable non-deductible contribution to my traditional IRA in February, 2013.
February, 2013 - IRA nondeductible contribution made for 2013
February, 2013 - Conversion of IRA (which held only the contribution for 2012)to Roth IRA
April, 16, 2013 - Recharacterization of Roth + earnings
June, 2013 - Conversion of IRA (2012 contribution + earnings) back to Roth
Thank you so much for your help and your patience. I apologize for the confusing and time consuming omission on my original post.
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