IRA contributions after you file

[Toby_Lee]

Hi community,

I have already filed my taxes for 2022.

I wanted to open a traditional IRA account and rollover the funds into a backdoor ROTH IRA. Due to high MAGI and employer 401k, I can’t open a normal Roth IRA and can’t deduct taxes on a traditional IRA.

I understand I can contribute to a traditional IRA for the 2022 tax year until April 18 2023. I had a few questions regarding this.

1. As long as I contribute to the traditional IRA before April 18, can I rollover to backdoor at any point in time, even after April 18?

2. Do I need to amend my filed return for 2022, considering I am not deducting my contributions?

3. What is my 8606 obligation? Do I have to send my 2022 contribution in this form now, or can I fill the 2022 and 2023 contributions together on a 8606 when I file my 2023 taxes in 2024?

Best wishes

[DanaB27]

1. Yes. If you make the conversion in 2023 then it will be reported on your 2023 tax return.

2. and 3. Yes, you need to file a 2022 Form 8606 to report the nondeductible traditional IRA contribution for 2022 (Basis). You will have the basis on line 14 of the 2022 Form 8606 and this needs to be entered on your 2023 tax return when you make the conversion in 2023.

[Toby_Lee]

Will the contribution still count towards my 2022 limit of $6000 if I convert to backdoor Roth IRA after April 2023? Or will it eat into my $6500 2023 contribution limit?

[DanaB27]

Yes, if you make an IRA contribution for 2022 in 2023 then it will count towards the $6,000 limit for 2022. You will report the nondeductible traditional IRA contribution on your 2022 Form 8606.

You still can make the $6,500 contribution for 2023 as long as you have enough taxable compensation in 2023.