the boss Posted February 10, 2012 Report Share Posted February 10, 2012 I have a client that converted a traditional IRA funded with non-deductable contributions to a Roth at the behest of their "financial advisor", and has since received a 1099R reporting that she is taxable for the full amount. Being that the IRA was funded with after tax dollars, is it up t the reporting institution to correct the 1099R? If the client doesn't get help on this matter from the institution, what would you recommend? Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 10, 2012 Report Share Posted February 10, 2012 How would the institution know it was funded with after tax dollars? Her preparer has "notified" the IRS over the years using Form 8606. Now you use Form 8606 with her return. 1 Quote Link to comment Share on other sites More sharing options...
joanmcq Posted February 11, 2012 Report Share Posted February 11, 2012 And hopefully she was filing an 8606 all along! And Lion is right, the institution has NO idea of what the basis is in the IRA. IRA 1099-Rs always have 'taxable amount not determined' checked. It is the taxpayer's requirement to track basis, and report it to the IRS by filing the 8606. You can reconstruct basis from the 5498's received each year and a copy of the tax returns filed, since she began making the nondeductible contributions. Have fun! Quote Link to comment Share on other sites More sharing options...
the boss Posted February 14, 2012 Author Report Share Posted February 14, 2012 That makes all the sense in the world. Its great to have this forum, esp with the work overload during tax season. I owe the two of you a day cruise on Biscayne Bay. Quote Link to comment Share on other sites More sharing options...
Lion EA Posted February 14, 2012 Report Share Posted February 14, 2012 I'll be there with my boat shoes on! Have a great tax season. Quote Link to comment Share on other sites More sharing options...
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