If made I made 2023 and 2024 Trad IRA contributions and full conversions to Roth IRA all in January 2024, how to complete Form 8606? For which years?

Forum|Forum|1 year ago
April 1, 2025
1 reply
0 views

Tax year 2022 was my first year for traditional IRA contribution, and in the same year (around March 2022), I did a full conversion to a Roth IRA (backdoor Roth IRA). Thus from April 2022 through December 2023 my Traditional IRA balance was $0. In January 2024, I made traditional IRA contributions for tax years 2023 and 2024, and I also converted both into Roth IRA (backdoor) within a week. I never received a 1099R for 2023. In January 2025, I received a 1099R listing the tax year 2023 and 2024 contributions. 1) For which tax years should I submit Form 8606? 2) If both 2023 and 2024 contributions will be on the same tax year 2024 Form 8606, where in Parts I and II do I list just the tax year 2023 amount, just the tax year 2024 amount, and the total amount contributed/converted in January 2024 for the combined 2023 and 2024 tax years? 3) What other year forms or fields should be filled or adjusted?

MindyB

Roth contributions spread across 2 years are a 2-step process. For the 2023 tax return, you should have prepared a Form 8606 - check your tax return to verify you did. If not, you can do so now. There may be a $50 late fee assessed unless you have cause. See: About Form 8606, Nondeductible IRAs to get a pdf form and fill it out, if needed.

Next, since the conversion for both years happened in 2024, it is correct that they were both reported to you on the 2024 1099-R. In order to ensure no tax is computed on the conversion, since you did not deduct them in the first place, after you enter the 1099-R, continue through the interview until you are asked if you moved the money through a rollover or conversion. Answer that you converted (all of it) to a Roth IRA. You should also report the nondeductible basis of prior year in this section (the 2023 contribution.) Separately, in Deductions, you'll report the 2024 non-deductible IRA contribution. This will endure the 8606 reports the 2023 nondeductible basis, the 2024 contribution, and subsequent rollover, leaving you with a $0 basis on Form 8606 at the end of 2024.

Here are the full instructions to report a Backdoor Roth: How do I enter a backdoor Roth IRA conversion?