Backdoor roth had dividend at the end of year which wasnt converted

anadi
anadi Member Posts: 1 Newcomer
edited April 4 in Filing my taxes

I have done a backdoor roth in Dec 2023. I contributed & transferred $6500. I didnt have tIRA before that. I got a dividend of $1.23 on 31st Dec, which i converted to Roth in Jan 24

In the tax form, i reported Balanced pending on 31st dec as $1. This is creating $1 as basis & line 13 (Non taxable portion of distribution) becomes $6499 which doesnt look right. Is this correct?



r/whitecoatinvestor - Backdoor Roth - Is FreeTax calculating correctly for dividend earned

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 251
    edited April 5

    Hi Anadi,

    The way this can happen is if you include $1 on the IRA Basis and Value page for the value of all your IRAs. If that is correct, then the 8606 will show exactly like your posted. I have included a screen shot of what this may look like in the application. So check your account. Did you convert that $1 to the Roth? If so, does that reflect on your 1099-R? If not, then that is correct and a little weird. It can be converted later to a Roth.

    IRA_Basis.png

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