@ThomasM125 Thanks. Another follow up question : if I make $6000 contribution (for 2021 contribution) to traditional IRA now, and I also made a little contribution to traditional IRA (for 2020, the contribution is not deductible, it is after tax contribution). There is no earning, they sit there as cash.
As soon as the $6000 Traditional IRA contribution(for 2021) is settled, can I move to roth ira immediately? I am not sure if my 2021 traditional IRA contribution is fully deductible, therefore I don't know if any portion of conversion to roth IRA is taxable. If any portion of conversion is taxable, should I pay the tax when filing 2021 tax return? Or should I pay tax immediately when making the conversion?
E.g. if I make traditional IRA contribution in January 2022 (but the contribution is for year 2021) and convert some money from traditional IRA to Roth IRA, then I report traditional IRA contribution in 2021 tax return and report conversion (backdoor roth IRA) in 2022 tax return, correct? How can I report the conversion (backdoor roth IRA)? Usually, I file tax return via TurboTax website, and I have never seen a question asking about backdoor Roth IRA.
Thanks.
