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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I have a question about IRA to Roth IRA conversion. The IRA

Customer Question

I have a question about IRA to Roth IRA conversion. The IRA now is a mixed account...partially a taxed rollover from a previous job and part non taxed contribution. I know I need to pay taxes on some... but how do I find out what amount?
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.

Hello JA Customer,


If your traditional IRA account contains both pre tax and after tax contributions, then you need to complete Form 8606, Part II, to see how much of your conversion is actually subject to tax.


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Thank you JA Customer



Customer: replied 7 years ago.
Does the 8606 walk you through the prior years and all the mixed money and contributions that were put into the IRA? That is the problem is that everything seems only to address the current year and I need to do this for all the years since it wasn't done.
Expert:  Merlo replied 7 years ago.

Hello again JA Customer,


Really you should have started filling out the Form 8606 in the first year that mixed contributions were made to the account. You then carry those figures forward each year and complete a new form 8606 each year.


If you have not completed that form in the past, you will have to go back through your own personal records to determine exactly which contributions were made on a pre tax basis and which were on an after tax basis, and the date each of those contributions were made. Unfortunately absolutely no one except you has that information and so you could not obtain this anywhere but from your own records.


The form 8606 is going to ask you for your total basis in the account, and that is something you will have to compile on your own from records that you have kept, as the investment firm has no idea when you make contributions if they are on a pre tax or after tax basis.


If this was helpful please press the Accept button.


Thank you JA Customer