I did a Backdoor Roth in 2017 for the 2016 tax year and 2017 tax year.
I made a $5500 non-deductible IRA contribution for 2016, and additionally made a $5500 non-deductible IRA contribution for 2017.
My Form 8606 showed the 2016 contribution was non-deductible (i.e. I already paid taxes on it).
I just received a 1099-R form from Vanguard for the Traditional IRA account which shows Box 1 (Gross Distribution) and Box 2a (Taxable Amount) with the IRA fund amount in them of $11,000. Box 2b (Taxable Amount Not Determined and Total Distribution) have an X in them.
My understanding was that since these initial contributions were non-deductible, I'd already paid taxes on them, and didn't need to pay taxes on them. So I'm not really sure how to read this 1099-R form. Is it just that Vanguard doesn't know they are non-deductible contributions, and when I combine the 1099-R with the Form 8606 it'll cancel each other out?
I'd appreciate any insight/understanding on how how to read this 1099-R form.
