- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, if you had pre-tax funds in your traditional IRA then the pro-rata rule applies. This means that with each distribution/ conversion, you will have a taxable and nontaxable part.
The Backdoor Roth only works if your traditional/SEP/SIMPLE IRAs are empty. If you plan to use this strategy in the future you might want to think about a reverse rollover where you rollover IRA money to a company plan, like a 401(k). Only pre-tax funds can be rolled from an IRA to a company plan. Therefore, you would isolate the basis and could start the Backdoor Roth procedure fresh. But it only works if your employer allows it, not all plans do.
Yes, if you are getting your contribution returned then please remove the contribution from your return. You will get a 2023 Form 1099-R next year. If you had earnings returned these will be taxable and subject to the 10% early withdrawal penalty if you are under 59 ½.
**Mark the post that answers your question by clicking on "Mark as Best Answer"