Hi All,
I made above $153k in 2023 so could not directly contribute to a ROTH IRA. I did do a backdoor roth by contributing to a traditional IRA in Jan 2023 and then converting to roth. My tax forms are now ready on my fidelity brokerage and I have forms issued, a form 1099R and a form 5498. The form 1099R shows a gross distribution of $6000 in box 1 and $6000 in box 2a taxable amount.
Form 5498 shows $6000 on line 3 (roth IRA conversion amount). On line 4 (fair market value of account) it shows $4,324
I'm somewhat confused by the form 1099R. Is it indicating that I own taxes on that $6000? obviosuly this was all funded with post tax money already. Did i make a mistake during my roth IRA conversion?
On line 4 form 5498, what does it mean by fair market value of the account and why is that value less than $6000 that i contributed?
Thank you all I appreciate your help!
I made above $153k in 2023 so could not directly contribute to a ROTH IRA. I did do a backdoor roth by contributing to a traditional IRA in Jan 2023 and then converting to roth. My tax forms are now ready on my fidelity brokerage and I have forms issued, a form 1099R and a form 5498. The form 1099R shows a gross distribution of $6000 in box 1 and $6000 in box 2a taxable amount.
Form 5498 shows $6000 on line 3 (roth IRA conversion amount). On line 4 (fair market value of account) it shows $4,324
I'm somewhat confused by the form 1099R. Is it indicating that I own taxes on that $6000? obviosuly this was all funded with post tax money already. Did i make a mistake during my roth IRA conversion?
On line 4 form 5498, what does it mean by fair market value of the account and why is that value less than $6000 that i contributed?
Thank you all I appreciate your help!
Statistics: Posted by sevoflurane — Sat Jan 20, 2024 3:06 pm — Replies 3 — Views 259