The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Gone Fishing on May 05, 2015, 09:19:55 AM
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Before the deadline, I recharacterized my 2013 IRA contributution from ROTH to traditional and now I am amending my return to get the refund of taxes paid.
I was slightly into the IRA deductibility phase out range, so I need to calculate the non-deductible contribution amount. I can not find a chart or calculator to assist with this.
Can anyone point me in the right direction?
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http://www.irs.gov/uac/Form-8606,-Nondeductible-IRAs
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I was slightly into the IRA deductibility phase out range, so I need to calculate the non-deductible contribution amount. I can not find a chart or calculator to assist with this.
The non-deductible amount will equal the amount you contributed minus the amount you were allowed to deduct.
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...the amount you were allowed to deduct.
That is what I am trying to figure out...
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Maybe this will be more helpful. The 8606 is just where the non-deductible portion will end up. I created it in our software with a bunch of fake numbers.
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...the amount you were allowed to deduct.
That is what I am trying to figure out...
See pp. 32-35 of http://www.irs.gov/pub/irs-prior/i1040--2013.pdf.
Does that give you what you need?
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Thanks guys! That put me on the right track. I was able to find what I needed here to calculate my deductible amount.
http://www.irs.gov/pub/irs-prior/p590--2013.pdf
It looks like I will also need to file the 8606 for the non-deductible amount which will give me a cost basis on my Traditional IRA.
So, next question: After I file the 8606, I will have a basis of $406 on my Traditional IRA that I am assuming will be prorated over my entire TIRA balances everytime I make a withdrawal/conversion for the next 50+- years, which should be mostly in the 0-15% bracket. Is it even worth the headache/paperwork for the potential for $0-$61 of tax savings ?