8606 still not fixed or not working

[WITAXLADY]

I have done the nondeductible trad IRA's before into ROTH's and no issues - I cannot get the form to calculate correctly!!

I am very leery of putting thru a 8606 with it taxable and then subtracting it on line 21!!!

ATX - what gives?

Forum - am I really doing something really different this year?

thx d

[joanmcq]

the only 8606 I've done was for a Roth conversion and the 8606 seemed to work correctly.

[Randall]

I did one for a traditional IRA distribution with basis.  It worked for me.

 

[ETax847]

Check the bottom of the 1099R to make sure the fields are not overlooked.

[Abby Normal]

I had to override several fields on the 8606 for a nondeductible 2017 IRA being recharacterized to a Roth. The 1099-R was code R but nothing was showing on the 8606. I just plowed through and hope I didn't do something wrong.

[Hahn1040]

1099R with code R in box 7 is a 2017 contribution recharacterized in 2018.  It is not reported on the 2018 return.  It should have been addressed on the 2017 return:  attach a statement to your return explaining the recharacterization. If it was a ROTH to Traditional, then the nondeductible contribution would have been reported on the 8606 for 2017.

See form 8606 instructions: 

IF it is a 2018 contribution recharacterized in 2018 then it would be code N.  That would be reported on the 2018 return  Form 1040 4a.

 

[Abby Normal]

When 17 was filed, taxpayer had not yet decided if they wanted to leave it as a nondeductible or convert it to Roth. Unfortunately, they also had other traditional IRAs, so a good portion of the conversion ended up being taxable, and they still have nondeductible basis left.

[Hahn1040]

if it a code R then it was a recharacterization- not a conversion

Recharacterization is treated as if it were contributed to that IRA in the first place.  Does not trigger a taxable event

[Abby Normal]

Well, . Good thing it's still sitting here! Thanks!

[Hahn1040]

keep in mind that it is not reported on the 2018 return

If you had included the non-deductible contribution on the 8606 for 2017, you want to remove it

Guess you should amend the 2017 8606 to correct it and include the statement that the 2017 contribution was recharacterized .  There is a page for the explanation. see tab at the bottom of the 8606.

AND in response to the people who are complaining that the 8606 is not working... you just have to make sure you have the correct boxes checked on the 1099R and the top part of the 8606.  IF it dosn't look correct, look for another box to check.

My stumbling block was always when they have a traditional IRA with a basis and an inherited one-  to keep the inherited one out of the calculation.  Finally figured it out:  for the inherited one:  check inherited and do not check IRA. 

[Randall]

Thanks for these comments Hahn1040.  

 

[Abby Normal]

Yes, thanks! This has been very informative.