Timeline for Taxable Amount of Non-Deducted Traditional IRA that was Converted
Current License: CC BY-SA 3.0
10 events
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| May 2, 2016 at 20:44 | history | edited | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |
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| May 2, 2016 at 12:24 | comment | added | ybakos | Thanks for refining the answer regarding additional "pre-tax" basis in other traditional IRAs. I don't have any, so in my case, it's straightforward. | |
| May 2, 2016 at 9:34 | history | edited | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |
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| May 1, 2016 at 20:32 | comment | added | JTP - Apologise to Monica♦ | Yes, Dilip, I blew it. Even though TT software should take it into account, I should have included the warning of prorated tax on any existing pretax money. I may edit later tonight | |
| May 1, 2016 at 19:50 | comment | added | Dilip Sarwate | Actually, there is another issue that this answer does not touch on. Does the OP have any other Traditional IRA accounts? If so, the taxability of the amount withdrawn for the purpose of conversion to a Roth IRA depends on the total balance in all the Traditional IRA accounts as well as on whether the Traditional IRA has a basis (previous post-tax, that is, nondeductible, contributions to the Traditional IRA. | |
| May 1, 2016 at 14:59 | vote | accept | ybakos | ||
| May 1, 2016 at 4:18 | comment | added | user102008 | @ybakos: It's often complicated to do backdoor Roth IRA contributions with tax software. With TurboTax, I remember that you will have to enter it in two different places, and once you enter it in the second place, it will go back down again. | |
| May 1, 2016 at 0:07 | comment | added | JTP - Apologise to Monica♦ | You need to go in and specify that the $5500 was not deducted. I believe Form 8606 is where this gets entered. | |
| Apr 30, 2016 at 23:56 | comment | added | ybakos | Thanks. What's got me confused though, is that even when I enter the correct taxable amount in TurboTax, it adds about $1500 (!) to my tax liability. (I know this isn't a TurboTax forum, I'm just mentioning it.) | |
| Apr 30, 2016 at 23:40 | history | answered | JTP - Apologise to Monica♦ | CC BY-SA 3.0 |