Hi,
Thanks in advance for the help. I am wondering if I messed up and will just have to deal with the tax consequences or if I am filling out Turbotax incorrectly. Here is my situation:
In 2023 I opened up a Traditional IRA on Robinhood and deposited funds. I then invested those funds, still in 2023.
In February of 2024, I realized I should be converting this into a backdoor Roth IRA, so I sold the investments and then converted all of the funds in the traditional IRA into a Roth IRA. I then continued to max out the traditional IRA in 2024 with everything converted to Roth by the end of the year ($7,000).
When I am filling out my 8606 this year, Line 16 is reading $10,404 (the $7,000 max from 2024 plus the $3,404 from the tIRA I sold in February then converted to Roth). Line 17 reads $7,000 which leaves my Line 18 (Taxable amount) as $3,404. I'm confused why my taxable amount is so high. By the end of 2024, everything from my traditional IRA has been converted to Roth. Anything I can fix?
Thanks in advance for the help. I am wondering if I messed up and will just have to deal with the tax consequences or if I am filling out Turbotax incorrectly. Here is my situation:
In 2023 I opened up a Traditional IRA on Robinhood and deposited funds. I then invested those funds, still in 2023.
In February of 2024, I realized I should be converting this into a backdoor Roth IRA, so I sold the investments and then converted all of the funds in the traditional IRA into a Roth IRA. I then continued to max out the traditional IRA in 2024 with everything converted to Roth by the end of the year ($7,000).
When I am filling out my 8606 this year, Line 16 is reading $10,404 (the $7,000 max from 2024 plus the $3,404 from the tIRA I sold in February then converted to Roth). Line 17 reads $7,000 which leaves my Line 18 (Taxable amount) as $3,404. I'm confused why my taxable amount is so high. By the end of 2024, everything from my traditional IRA has been converted to Roth. Anything I can fix?
Statistics: Posted by hokiebob15 — Thu Jan 23, 2025 3:20 pm — Replies 1 — Views 130