Are my retirement contributions nondeductible for Roth conversion?

Forum|Forum|1 year ago
January 27, 2025
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I want to do a roth conversion of my traditional IRA, but first, I need to make sure it consists of 100% nondeductible contributions to not trigger the pro rata rule. So, I'm backtracking through my old tax forms. From 2016-2020, I had a TSP from the military. I'm not sure whether my contributions were deductible or not, but from looking at the tax returns, I don't think they are. I don't see an 8606 form, but I do see a 8880 form for a savings credit. I also see on line 12 that it was blank- indicating that I was not able to take the credit. Shall I assume that none of the funds were deductible, then? In 2020, I set up a Traditional IRA and rolled my TSP funds (about $6000) into it. So far, everything has been nondeductible (?). The money sat in there and grew a bit, but I didn't actually contribute to the traditional IRA until 2022. Based on the tax return transcript from 2022, the line for "IRA deductions" is blank, so I don't think I took a deduction for that. So far, it sounds like I'm able to do a conversion without triggering pro rata. Can anyone confirm? I'm not really sure how to 100% tell whether my TSP contributions were deductible or not, but nothing in my tax forms indicate they were.

MAK70

Some of your contributions are nondeductible for the Roth conversion. The TSP were payroll deductions, so they were deducted from your pay before taxes. They act like a 401k, so they would not have been deductible. If you did not deduct the 2022 contribution, you want to make sure you filed the Form 8606- otherwise the contributions are not considered nondeductible even if you did not deduct them. For this conversion, the prorata rule would apply, because the TSP is taxable income.

julia-vu-ucsfAuthor

I can’t find my 2022 tax return and my CPA won’t return my calls, so I have no idea if he filed the 8606 for me that year. Should I be safe than sorry, and file one just in case? Would the IRS be able to tell me if they have one on record from that year?

RobertB4444

You can view your tax return history in your IRS account. Just go to this link and create an account for yourself and you'll be able to see if the 8606 was filed in 2022.

@julia-vu-ucsf

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