Example: if I make $6000 traditional IRA non deductible contribution (for year 2022) in January 2023, then there is Form 8606 will be on 2022 tax return. In the same month (January 2023), I make $5000 backdoor roth conversion, will backdoor conversion be reported in 2022 tax return form or 2023 tax return form? conversion on the 2023 return ... the non deductible contribution on the 2022 return
If backdoor roth conversion is reported in 2023 tax return form (following year), then I don't need to do the backdoor roth conversion right after traditional IRA contribution. True but why would you let the money sit there any longer than needed if it is earning nothing ? Better to make the conversion right away and get the money earning something.
Or I can do both traditional IRA non deductible contribution and backdoor roth conversion in late December, by the time, I should know if I am qualified to make roth IRA contribution directly or not, depending on stock market (option trading, annual gain/loss is high unpredictable). If no capital gain, my current salary (around 127k, slightly under income limit 129k) still barely allows me to make Roth IRA full amount contribution directly. Why make things more complicated than needed ? If you make an IRA contribution then the ROTH conversion (back door) does it really matter if you can make a "front door" ROTH contribution at all ? The "can I - can't I" issue is unneeded worry ... just do the back door and be done with it. It all works out the same in the end.
