Hello,
I have a question regarding the tax implications of a recent backdoor Roth IRA I made, and I'm seeking some guidance as I prepare to file my taxes using TurboTax.
Background: I have around $10,000 in a Traditional IRA resulting from a rollover from a previous employer that has been there for 3+ years. In April 2023, I executed a backdoor Roth IRA strategy by contributing $6,500 to my Traditional IRA and promptly transferring it to my Roth IRA.
My Concern: Given the existing contributions in my Traditional IRA from the previous rollover, I am curious about the pro-rata rule and whether it will impact my taxes for this scenario. Will I be subject to additional taxes, and if so, how can I address this before the upcoming April 15th deadline? I'm also wondering if any actions can be taken to reverse this, or if the opportunity has passed since December 31, 2023, has already elapsed.
Thank you in advance!
