In 2019, I did a backdoor Roth IRA conversion that went off without any problems (put $6000 into traditional IRA, converted to Roth IRA). In 2020, I was looking to do the same, but I hit a snag.
I made the 2020 contribution and conversion in the last couple weeks of the year, and due to holiday delays and such, the conversion step didn't register on Vanguard until January. So, I have a contribution in 2020 and the conversion now in 2021.
So, I was wondering if anyone here has been in a similar situation or can advise on a few things that are somewhat unclear to me:
For reporting, I was following a guide (https://thefinancebuff.com/how-to-report-backdoor-roth-in-turbotax.html). The guide indicates that I should report the traditional IRA contribution on my 2020 tax return, but wait until 2021 to report the conversion. Is that correct?
Will I owe more in 2021 because of this situation? In Turbo Tax, entering the conversion greatly increases the "tax due" until you enter the contribution later on, which reverts the "tax due". But in this case, for 2021, it seems I'd enter the conversion step only (which increases tax due significantly) with no contribution step to counter that. Is there another form that you fill out to indicate "this conversion relates to a contribution made the previous year so it should not be taxed?".
Does this in any way affect my ability to make a backdoor contribution in 2021? My intent was to contribute/convert for 2020, and then this year do another $6000 contribute/convert. Is that problematic b/c the previous conversion did not complete before 2021? Want to make sure I don't over contribute if this situation already puts me at the 2021 max.
Any guidance or insight would be greatly appreciated! I'm definitely going to be more careful to avoid this situation in the future :P.