Hi all,
First, I have tried to find an answer on this forum, online, and by calling IRS (government shut down unfortunately) and Vanguard. I was not able to find an answer. If I missed it, please point me in the right direction. Thank you!!
My case:
In years 2015, 2016, and 2017 I contributed to tIRA. All money are nondeductable and are eligible for Roth Conversion. For simple numbers, total is $10k ($9k basis + $1k gains).
In 2018, I did not contribute to tIRA, but I contributed to Roth IRA (fully).
I would like to convert ALL $10k in tIRA to Roth this year (2 days left..) and I know that I will have to pay tax on the gain.
I also know that I need to fill out Form 8086.
When I look at Form 8086 Part 1, it says:
"Complete this part only if one or more of the following apply.
• You made nondeductible contributions to a traditional IRA for 2018.
• You took distributions from a traditional, SEP, or SIMPLE IRA in 2018 and you made nondeductible contributions to a
traditional IRA in 2018 or an earlier year. For this purpose, a distribution does not include a rollover (other than a
repayment of a qualified 2017 disaster distribution (see 2018 Forms 8915A and 8915B)), qualified charitable distribution, onetime distribution to fund an HSA, conversion, recharacterization, or return of certain contributions.
• You converted part, but not all, of your traditional, SEP, and SIMPLE IRAs to Roth IRAs in 2018 (excluding any portion
you recharacterized) and you made nondeductible contributions to a traditional IRA in 2018 or an earlier year."
None of the bullet points apply to me if I want to covert all tIRA money to Roth.
Does anyone know what to do? Has anyone been in the same situation?
Can I convert all tIRA to Roth IRA this year?
If yes, how to fill out Form 8086 if Part 1 does not apply to me?
If no, is it because I did not contribute to tIRA this year?
Again, thanks a lot for any ideas!