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2007 trad IRA contribution, 2010 roth IRA conversion, no form 8606

Home Retirement Accounts 2007 trad IRA contribution, 2010 roth IRA conversion, no form 8606

  • Avatar jacoavlu 
    Moderator
    Status: Physician, Small Business Owner
    Posts: 2382
    Joined: 03/01/2018
    You will probably be costing the IRS more than this amount by reactivating this case.

    Click to expand…

    had to say I like this part

    The Finance Buff's solo 401k contribution spreadsheet: https://goo.gl/6cZKVA

    #233870 Reply
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    Avatar xenotar80 
    Participant
    Status: Pharmacist
    Posts: 10
    Joined: 07/22/2019

    Hmm ok I think I get what you both are saying.

    mini recap of the situation:
    I should have submitted a form 8606 in 2007 when i added nondeductible 4k to a tIRA and also in 2010 when I converted the tIRA to a Roth IRA. Since I failed to file form 8606, in 2012, the IRS sent me a letter to tax me on the converted amount in 2010. This seems to have been “resolved” by the IRS since they accepted my response without a reply.

    So basis that the IRS tracks is only for tIRA, SEP, and SIMPLE IRAs per form 8606.

    So now that the money is already in a Roth IRA, that in itself is going to have tax free distributions at retirement correct? I won’t need to track Roth basis since I don’t intend on pulling any money out early.

    But moving forward, I would need to have form 8606 whenever I contribute into a tIRA and convert it the next day to a Roth IRA.

    #233880 Reply

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