Happy 2026! I just realized that I must remove earned interest ($7) from a non-deductible contribution ($8000) to a traditional IRA by Dec 31; part of my backdoor ROTH IRA conversion in 2025; $7 remains in my traditional IRA on Jan 1, 2026. Being 2026, I have already made my non-deductible contribution of $8600 to my traditional IRA. I'm hoping there is a simple fix for my mistake.
- Do I convert the $7 to my Roth IRA as a separate step (today!) or as part of my 2026 backdoor ROTH IRA conversion (i.e., $8607 plus any interest earned in 2026)?
- How do I enter Form 8606 for my 2025 taxes (enter $8007 to pay taxes on the $7 in 2025, or enter $8000 in 2025 and pay the $7 tax on my 2026 Form 8606)?
- What happens to my 2025 1099-R, and 2026 1099-R, given the timing of the conversions; and how do I enter these in Turbo Tax?
Any other advice on fixing this? The experts in this community have always been great, thanks in advance for making taxes easy.
