I am currently working on correcting my total basis for my Traditional IRA. I made a series of missteps that I'd like to correct to have an up to date basis for my tIRA before I convert to Roth. See below:2018 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)2019 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)2019 after-tax contributions (have 8606 form but 2018 basis didnt carry over)2020 after-tax contributions (have 8606 form but 2019 basis didnt cary over)2021 after-tax contributions (have 8606 form but 2019+2020 basis didnt cary over)Here is how my actual basis should look:What is the best way to get my basis back up to date? I think I understand amending 8606 forms but how do I handle the Recharacterizations? A step by step guide of what to do would be very help! Thanks so much in advance

Question

Amending Prior 8606 Forms? Correcting Total Basis for tIRA

Forum|Forum|2 years ago
September 14, 2023
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I am currently working on correcting my total basis for my Traditional IRA. I made a series of missteps that I'd like to correct to have an up to date basis for my tIRA before I convert to Roth. See below:

2018 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)
2019 rIRA -> tIRA recharacterization (Have 1099-R but not sure how to apply to 8606/basis)
2019 after-tax contributions (have 8606 form but 2018 basis didnt carry over)
2020 after-tax contributions (have 8606 form but 2019 basis didnt cary over)
2021 after-tax contributions (have 8606 form but 2019+2020 basis didnt cary over)

Here is how my actual basis should look:

What is the best way to get my basis back up to date? I think I understand amending 8606 forms but how do I handle the Recharacterizations? A step by step guide of what to do would be very help! Thanks so much in advance

Not A Product Question

D

dmertz

Employee

A recharacterization from a Roth IRA to a traditional IRA is treated as if the contribution was originally made to the traditional IRA on the date of the original contribution. Whatever portion of the resulting traditional IRA contribution is nondeductible adds to your basis for that year.

D

DenverTechieAuthor

Thanks and this just goes onto form 8606 or somewhere else? If I did $5500 non deductible contribution AND and $1000 rIRA -> tIRA rollover in the same year - how do I code this on my return / amendment?

D

dmertz

Employee

Nondeductible traditional IRA contributions are required to be reported on line 1 of the Form 8606 for the year for which the contribution was made. With a $5,500 contribution originally made to the traditional IRA and a $1,000 contribution made to the Roth IRA for that same year and subsequently recharacterized, you contributed $6,500 to your traditional IRA for that year. Your Form 8606 for that year should have had $6,500 on line 1 (assuming that you were covered by a workplace retirement plan and that your MAGI was above the limit where your traditional IRA contribution is nondeductible).