Hi All,
I've confused myself doing my tax return through H & R Block:
In 2017 I contributed the max to a Traditional IRA. Upon doing taxes in 2018, i realized the traditional IRA was defunct as we make over the AGI limit to qualify for the contributions being tax free. Thus, decided may as well convert to a Roth so it will be tax free on the back end....
I made the conversion in Feb 2018 after i'd already done my tax return for 2018.
Now in 2019 i'm trying to report this conversion but not sure how to do it as in H & R Block it won't let me say i converted 6k from traditional to IRA as it wants me to say i contributed the 6k to the traditional in 2018 (but i didn't i contributed it in 2017), so how do i report a conversion in 2018 for funds that were added in 2017?
I believe the form to declare that the conversion should be tax free (as paid full tax on the contribution in the traditional already) is 8606, but it's this form that wants me to say i contributed it in 2018......
Also - form 1099-R is assuming that i should be taxed on the 6k as it doesn't know that i already paid the tax on this amount....
Anyone come across this issue - and how did they solve it?
Thanks!