- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Retired couple in their late 70's, made a $40K Roth IRA conversion from Traditional IRA.
Fidelity sent them a letter seeing they must file Form 8606 (Nondeductible IRA).
When I go to Form 8606 Part II line 16 is blank, when I click on it takes me to the 1099R.
My question is why line 16 on Form 8606 is blank?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You fill in the info from the 1099-R. Then, you use the Form 8606 for the details that apply.
And this cannot exist: "Retired couple in their late 70's, made a $40K Roth IRA conversion from Traditional IRA."
There is One Account Owner. That is who you are working on for this task. That one person: taxpayer or spouse.
Don't yell at us; we're volunteers
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you, The question's I filled out 1099R worksheet why Form 8606 is not populated.
You're absolutely correct, it's the taxpayer not the spouse.
Thank you again
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
"why Form 8606 is not populated"
Once you fill in the 1099-R, you need to also indicate that this was converted and not simply kept as a distribution. Or, if the 1099-R code is Direct Transfer, that still means the sending entity might not code it as Conversion; they code it for the money Out, and not what is happening at the receiving end.
Don't yell at us; we're volunteers
