Did I over contribute to trad IRA / backdoor Roth?

Forum|Forum|1 year ago
March 30, 2025
2 replies
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I contributed $8000 to an IRA (I'm 50+) and the funds grew to $8300'ish - in December I moved all funds in the standard IRA account ($8300) to the Roth backdoor account. I'm now doing my taxes, and TT is telling me there is an excess of 300 and a penalty involved.

Was I only supposed to transfer exactly $8000 from the traditional IRA into the Roth backdoor and leave the remaining balance ($300) in the standard IRA?

Thanks in advance...

Best answer by fanfare

Upon reporting a Trad IRA contribution (non-deductible) on your tax return, you can then also report a Roth conversion of the contributed amount for net tax of zero, unless your IRA previously had value exceeding basis.

In that case, it can't be done tax free.

to report a non-deductible contribution, Form 8606 must be attached.

Since you converted an extra 300, you pay tax on that. there is no penalty for doing that.

@TimTheLandlord

VolvoGirl

Employee

Sorry wrong post

DanaB27

No, you don't need to leave part in the traditional IRA. You can convert the full $8,300. Please make sure you do not select that you moved the fund to a Roth IRA in the IRA contribution interview.

Please review How do I enter a backdoor Roth IRA conversion?

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