I have four retirement accounts, all with the same custodian: SEP IRA, Traditional IRA, ROTH IRA and 401K from previous employer.
I have previously made non-deductible contributions into the Traditional IRA.
In 2018 I did a ROTH conversion from Traditional IRA into ROTH IRA, but in 2019 and 2020 did not do a conversion or any other IRA activity.
Q1 - I thought that I needed to file form 8606 every year to document my "total basis in traditional IRAs", but Turbo Tax did not make this form for 2019 or 2020 even though I thought I forced it in 2020. Reading the form, it seems that it is not necessary to file the form unless I made a non-deductible contribution in that year or had a distribution or conversion. Does that seem right?
Q2 - Form 8606 seems to lump my SEP IRA and Traditional IRA together and consider my basis as applying to the total. Am I reading this correctly?
Q3 - I am thinking of doing a ROTH conversion this year by moving some shares of stock from the SEP IRA to the ROTH IRA. When I do that will they calculate the value of the shares at the time of the move and that will be the amount of my conversion? Form 8606 seems like it will apply my basis to this conversion even though the stocks came from SEP IRA and the non-deductible contributions were made to traditional IRA?
Q4 - Form 8606 does not seem to track my 401K. If I roll-over the 401K into a traditional IRA, my line 6 total value of all traditional, SEP and simple IRAs will get a big jump. Is there any tax form that I need to file to document the roll-over, other than including the new IRA in my 2022 form 8606?
Thanks.
Joe
I have previously made non-deductible contributions into the Traditional IRA.
In 2018 I did a ROTH conversion from Traditional IRA into ROTH IRA, but in 2019 and 2020 did not do a conversion or any other IRA activity.
Q1 - I thought that I needed to file form 8606 every year to document my "total basis in traditional IRAs", but Turbo Tax did not make this form for 2019 or 2020 even though I thought I forced it in 2020. Reading the form, it seems that it is not necessary to file the form unless I made a non-deductible contribution in that year or had a distribution or conversion. Does that seem right?
Q2 - Form 8606 seems to lump my SEP IRA and Traditional IRA together and consider my basis as applying to the total. Am I reading this correctly?
Q3 - I am thinking of doing a ROTH conversion this year by moving some shares of stock from the SEP IRA to the ROTH IRA. When I do that will they calculate the value of the shares at the time of the move and that will be the amount of my conversion? Form 8606 seems like it will apply my basis to this conversion even though the stocks came from SEP IRA and the non-deductible contributions were made to traditional IRA?
Q4 - Form 8606 does not seem to track my 401K. If I roll-over the 401K into a traditional IRA, my line 6 total value of all traditional, SEP and simple IRAs will get a big jump. Is there any tax form that I need to file to document the roll-over, other than including the new IRA in my 2022 form 8606?
Thanks.
Joe