Question

Traditioan IRA to Roth Conversions for prior and current tax years

Forum|Forum|6 years ago
May 8, 2020
1 reply
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In March 2020 I made a non-deductible cash contribution for tax year 2019 to my Roth IRA. When I later prepared my 2019 federal taxes for filing, I discovered my AGI was to high to contribute directly to my 2019 Roth IRA without penalty. So in May 2020 I withdrew the same tax year 2019 cash amount from my Roth IRA and instead made a non-deductible cash contribution for tax year 2019 to my Traditional IRA.

During the interim between the above deposit and withdrawal for tax year 2019 from my Roth IRA and redeposit to my Traditional IRA, I also made an additional non-deductible cash contribution for tax year 2020 to my Traditional IRA. This 2020 contribution was then immediately rolled over as a 2020 backdoor conversion to my Roth IRA. The tax year 2020 activity was also completed in April.

May I now still make an allowable tax year 2019 backdoor roll over conversion from my Traditional IRA to my Roth IRA without penalty?

Not A Product Question

macuser_22

Employee

@00WM00 wrote:

May I now still make an allowable tax year 2019 backdoor roll over conversion from my Traditional IRA to my Roth IRA without penalty?

No. A 2019 conversion must have taken place before Dec 31, 2019. It is not a 2020 conversion that will be reported a year from now in 2021.

The 2019 IRA contribution made before July 15,2020 must be reported in your 2019 tax return. If you select to make it non-deductible then a 2019 8606 form will be part of your tax return . You will need the line 14 amount next year when entering the 2020 1099-R for the conversion.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**