Dear Bogleheads,
I contributed $7000 to my Vanguard IRA account, then rollover to my Vanguard Roth IRA account the next day.
I received 2024 Form 1099-R today from Vanguard for this Backdoor Roth activity- below are filled on the form:
1. Gross distribution $7002.50
2a. Taxable amount $7002.50
2b Taxable amount not determined (x)
Total distribution not determined (x)
7. Distribution code(s) 2
IRA/SEP/SIMPLE (x)
16. State distribution $7002.50
Questions:
1. Since the contribution to my IRA account was after-tax and then rollover to Roth IRA, should the taxable amount $0 for both Federal and State?
2. It seems that there was $2.50 gain in just 1 day, how to deal with this $2.50 - is this taxable? Also, the contribution to Roth was over $7000 now, should I contact Vanguard to withdraw $2.50 to within $7000 limit? (And if so, I may have to modify my tax return at a later time once Vanguard provides the tax form for this $2.50 withdraw?)
Thank you so much !
I contributed $7000 to my Vanguard IRA account, then rollover to my Vanguard Roth IRA account the next day.
I received 2024 Form 1099-R today from Vanguard for this Backdoor Roth activity- below are filled on the form:
1. Gross distribution $7002.50
2a. Taxable amount $7002.50
2b Taxable amount not determined (x)
Total distribution not determined (x)
7. Distribution code(s) 2
IRA/SEP/SIMPLE (x)
16. State distribution $7002.50
Questions:
1. Since the contribution to my IRA account was after-tax and then rollover to Roth IRA, should the taxable amount $0 for both Federal and State?
2. It seems that there was $2.50 gain in just 1 day, how to deal with this $2.50 - is this taxable? Also, the contribution to Roth was over $7000 now, should I contact Vanguard to withdraw $2.50 to within $7000 limit? (And if so, I may have to modify my tax return at a later time once Vanguard provides the tax form for this $2.50 withdraw?)
Thank you so much !
Statistics: Posted by fred2017 — Mon Jan 13, 2025 3:25 pm — Replies 4 — Views 92