Roth IRA contribution and backdoor conversion in March

Forum|Forum|2 years ago
March 2, 2024
2 replies
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Hi,

I want to open Roth IRA account in March and contribute for the year 2023 and file the tax at the end of March. it should be backdoor conversion.

Does it make the filing complicated? I don't think the broker will send the roth IRA form before filing the tax.

Thanks

Best answer by RachelW33

Thanks for your answer.

I am confused if I don’t receive the form 8606 this year, how do I report in my 2023 return?

do you mean I have to report both for 2023 and 2024 return if the broker send the form in 2025?

Form 8606 is a form that you need to include with your 2023 tax return by following the steps listed in my previous answer. It is not a form that is mailed to you by the brokerage.

Next year around this time, the brokerage will mail you a Form 1099-R that you will need to include on your 2024 tax return.

So in summary, you will report your non-deductible traditional IRA contribution on your 2023 tax return following the steps here. And then next year on your 2024 tax return, you will report the 1099-R that the brokerage will mail to you which reports the conversion from the traditional IRA to the Roth IRA.

RachelW33

No, it doesn't make things complicated at all. Roth IRA contributions are not reported on your tax return. You can go ahead and file your tax return, you don't have to wait until you make the Roth contribution. Be sure to open the Roth IRA by 4/15/24 and make sure that you specify that it is for tax year 2023.

For more information about Roth IRA's, including limitations based on your income and filing status, please see IRS link.

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2DoubleAuthor

It has to be back door Roth IRA, so I will owe tax on the contribution, correct? broker sent a form and I enter in turbotax return. that's why I wonder if that makes it complicated. pls help. thanks