Author Topic: Did a Backdoor Roth in March 2017 for 2016 and now I am confused  (Read 700 times)

jamesbond007

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This is my first time doing a backdoor Roth for my wife and myself. I waited till March this year (2017) to calculate MAGI based on all docs, and did the contribution to tIRA in March 2017 for 2016 and a few days later converted both the tIRAs to Roth IRAs at Vanguard. So my guess is that I will not receive a 1099-R for 2016 Tax Year? I already reported the tIRA contributions on turbotax. Now I have 2 questions:


1. In turbotax, for the question "were there any nondeductible contributions to the IRA."  I answered Yes and entered 0 on the next screen for IRA basis. Is this correct? I read in the instructions to do so, but that is assuming I am reporting my conversion.
[/size]2. Since I did the conversion in March 2017, should I even so anything to report it in 2016 tax returns? Or will it go on the 2017 tax return? If this goes on 2017 tax return, then do I need to enter anything for basis in my question 1? Could I have just NO instead of YES?[/color]
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[/size]I am confused. Did I screw up?[/color]
FI by 2025.

jamesbond007

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Re: Did a Backdoor Roth in March 2017 for 2016 and now I am confused
« Reply #1 on: March 19, 2017, 07:26:46 PM »
Bump.
FI by 2025.

Phy to FI

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Re: Did a Backdoor Roth in March 2017 for 2016 and now I am confused
« Reply #2 on: March 22, 2017, 07:38:09 PM »
I am not a tax professional, but I did just do my backdoor Roth in TurboTax.

It sounds like you did it right. You claim the nondeductable contribution on your 2016 taxes, and the conversion on your 2017 taxes. Your initial basis is $0. Turbo tax adds your contribution onto this basis.

So assuming you do another contribution and conversion in 2017 for 2017 tax year, next year you'll get a 1099-R for $11,000, and claim a basis of $5,500.
Family of four aiming for FI by 2019.

jamesbond007

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Re: Did a Backdoor Roth in March 2017 for 2016 and now I am confused
« Reply #3 on: March 22, 2017, 08:17:30 PM »
I am not a tax professional, but I did just do my backdoor Roth in TurboTax.

It sounds like you did it right. You claim the nondeductable contribution on your 2016 taxes, and the conversion on your 2017 taxes. Your initial basis is $0. Turbo tax adds your contribution onto this basis.

So assuming you do another contribution and conversion in 2017 for 2017 tax year, next year you'll get a 1099-R for $11,000, and claim a basis of $5,500.

Thank you.
FI by 2025.