Hi everyone,
Long-time lurker and infrequent poster. Thank you to everyone who contributes their knowledge to this forum.
To my surprise, freetaxusa is telling me I have an IRA basis of $278 from 2022.
In 2022:
- I started out with $0 in my traditional IRA.
- I contributed $6k to my traditional IRA.
- I converted the entire traditional IRA to a Roth IRA.
The 2022 1099-R shows $5,722.38 for 1a, 2a, and 16.
On 2022 Form 8606 I submitted:
- Lines 1, 3, and 5: $6k
- Lines 13, 16, 17: $5,722
- Line 14: $278
- Line 21: $0
Questions:
- Did I make a mistake on my 2022 taxes and, if so, do you recommend amending? If not, what should I do with this basis?
- In order to avoid this in the future, should I make sure to invest the initial traditional IRA contribution into something that won't lose nominal value before the conversion?
Thank you for your help.
Long-time lurker and infrequent poster. Thank you to everyone who contributes their knowledge to this forum.
To my surprise, freetaxusa is telling me I have an IRA basis of $278 from 2022.
In 2022:
- I started out with $0 in my traditional IRA.
- I contributed $6k to my traditional IRA.
- I converted the entire traditional IRA to a Roth IRA.
The 2022 1099-R shows $5,722.38 for 1a, 2a, and 16.
On 2022 Form 8606 I submitted:
- Lines 1, 3, and 5: $6k
- Lines 13, 16, 17: $5,722
- Line 14: $278
- Line 21: $0
Questions:
- Did I make a mistake on my 2022 taxes and, if so, do you recommend amending? If not, what should I do with this basis?
- In order to avoid this in the future, should I make sure to invest the initial traditional IRA contribution into something that won't lose nominal value before the conversion?
Thank you for your help.
Statistics: Posted by maester — Sun Mar 24, 2024 10:05 am — Replies 2 — Views 98