Question

Roth conversion basis issue - can I file a form 8606 for 2022now and how do I do it?

Forum|Forum|2 years ago
February 27, 2024
1 reply
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I have an IRA that was a rollover from an old employer account. I added nondeductibe contributions to it in 2021, 2022, and 2023 (500$ per month).

In late 2023, I did a Roth conversion and moved about half the balance to a Roth. I filed a form 8606 in 2021 so the basis is correct for that year, but I missed inputting it in 2022, and so the basis is not correct for the 2023 conversion in turbotax.

QUESTION do I need to file the 2022 form 8606 now and how do I do that? Do I do that before I file my return? I see there is a place to put an explanation as to why the basis differs from the prior return - can I just put it there?

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A

AnnetteB6

Yes, you need to file Form 8606 for 2022 before you file your return.

See the instructions below from TurboTax help article How do I enter a backdoor Roth IRA conversion?

If Form 8606 isn't included in your 2022 return, you'll need to fill out a 2022 Form 8606 to record your nondeductible basis for conversion, and mail this form to your designated IRS office. Don’t amend your 2022 return to record your basis. (Note: If you're required to file Form 8606 to report a nondeductible contribution to a traditional IRA, but don’t do so, you’ll be subject to a $50 penalty. This penalty can be waived if you can show reasonable cause.)

To enter this prior-year basis in TurboTax:

On the Here's your 1099-R info screen, select Continue.
- Search 1099-R and select the jump to link to access this screen.
Answer Yes to Any nondeductible Contributions to your IRA? if you had any nondeductible contributions in prior years.
Answer the questions about the basis from line 14 of your 2022 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs.