Did backdoor Roth IRA, but didn't receive 1099-R form

Forum|Forum|5 years ago
March 1, 2021
3 replies
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Did backdoor Roth IRA, but didn't receive 1099-R form. The contribution to my IRA was made for the year 2020, but made this year, 2021. I also completed the backdoor shortly afterwards to convert this into a Roth IRA, in the year 2021 for my 2020 contribution.

Would I still need to wait for the 1099-R form for my 2020 taxes, or would I file this in my 2021 tax forms.

IRA

Best answer by dmertz

There is no 2020 Form 1099-R to wait for or needed to complete your 2020 tax return. The traditional IRA contribution for 2020 must be reported on your 2020 tax return on Form 8606.

The Roth conversion performed in 2021 has nothing to do with your 2020 tax return. The Roth conversion performed in 2021 is reportable on your 2021 tax return. You'll receive the 2021 Form 1099-R near the end of January 2022, before you file your 2021 tax return.

N

npierson777

Yes, if the contribution was for 2020, the 1099-R should also be for 2020. The main advantage of a backdoor Roth IRA is that you pay taxes upfront on your contributions, and everything after that is tax-free, for you it means you have to pay taxes on the conversion now. Contact your financial institution to make sure how they handled the conversion.

D

dmertzAnswer

Employee

There is no 2020 Form 1099-R to wait for or needed to complete your 2020 tax return. The traditional IRA contribution for 2020 must be reported on your 2020 tax return on Form 8606.

The Roth conversion performed in 2021 has nothing to do with your 2020 tax return. The Roth conversion performed in 2021 is reportable on your 2021 tax return. You'll receive the 2021 Form 1099-R near the end of January 2022, before you file your 2021 tax return.

M

mrtreki

what if i did the conversion after i got my 1099-r?

J

JohnW152

If you made a conversion after you received your 1099-R, then the conversion would be reported in a different tax year.

For example, if you received your 2021 Form 1099-R this year, and converted this year (2022), those are two different reporting periods.

You’ll report the 1099-R for 2021 on your 2021 return.

You’ll report the conversion on your 2022 return. You'll get the 2022 Form 1099-R near the end of January 2023, before you file your 2022 tax return.

@mrtreki

J

jr911

Hi - having a somewhat similar issue. In Jan 2022, I deposited $6000 of POST TAX dollars into an IRA, and then immediately converted it to a ROTH IRA account (all on Charles Schwab). I thought that this contribution and rollover would count towards my 2021 tax year. Since I did all of this in Jan 2022, Schwab will not send me any tax documents until Jan 2023, so I have manually entered in 1099R information on TurboTax. I did the following:

Box 1 Gross Distribution: $6000

Box 2a Taxable Amount: $0

Box 2b:
CHECK: Taxable amount not determined box is checked

CHECKED: Total distribution is checked

Box 7 Distribution Code: 2

CHECKED: IRA/SEP/SIMPLE box is checked

This approach gets form 1040, Line 4a to show $6000 and Line 4b to show $0 as the taxable amount - which is correct. HOWEVER, when going through the final review, TurboTax says that on the 1099R, the Taxable Amount Cannot be ZERO if there is no prior year excess traditional IRA contribution on line 4 of the IRA info worksheet.

I don't know what this means, and I am really at a loss as what to do. This should be a fairly simple backdoor roth conversion. Please help if you can. Thank you!