In January 2016, I made an $11,000 contribution to a traditional IRA and then converted that amount in its entirety to a roth IRA (what I understand is a backdoor roth). I intended to have half the amount apply to 2015 and half to 2016 so that I would stay below the limits. I think I need to adjust my 2015 return to reflect this, but I am not certain.
A conversion occurs in the calendar year that it literally happened. While you can make a 2015 tax year IRA contribution in 2016 for 2015, the Roth conversion cannot be retroactively applied to 2015.
That being said, with a backdoor Roth, you keep the Traditional IRA contribution nondeductible. So, all else aside, the nondeductible contribution establishes "basis" on Form 8606 and keeps the conversion tax-free**.
If done correctly, the conversion to a Roth isn't taxable anyway. You would have $11,000 in nondeductible Traditional contributions. That would offset the 1099-R for the conversion, with only the earnings being taxable. If you did the conversion close to the contribution, the earnings would be small or nothing at all.
** A conversion is tax free when you don't have anything in a Traditional IRA by the end of the year (in this case, 12/31/2016)
A conversion occurs in the calendar year that it literally happened. While you can make a 2015 tax year IRA contribution in 2016 for 2015, the Roth conversion cannot be retroactively applied to 2015.
That being said, with a backdoor Roth, you keep the Traditional IRA contribution nondeductible. So, all else aside, the nondeductible contribution establishes "basis" on Form 8606 and keeps the conversion tax-free**.
If done correctly, the conversion to a Roth isn't taxable anyway. You would have $11,000 in nondeductible Traditional contributions. That would offset the 1099-R for the conversion, with only the earnings being taxable. If you did the conversion close to the contribution, the earnings would be small or nothing at all.
** A conversion is tax free when you don't have anything in a Traditional IRA by the end of the year (in this case, 12/31/2016)