In December 2023 my daughter contributed $6500 for 2023 traditional IRA then 5 days later we did the back door conversion of $6500. She just saw there were $5 left in the traditional IRA account. She plan to contribute $7000 for 2024 and do back door again. But how should she handle that $5?
in the 1099 R -1a- $6500, 2a- $6500 , code 2 on line 7. In the turbo tax she answers:
What did you do with the money? I move to another retirement
I did a combination
Amount $6500 converted to Roth
Let find your IRA basis. As of December 31 2022 $0
Value of your traditional IRA as of December 31 2023 : $5
But when I looked at the form 8606 :
Line 14 : non taxable amount : $ 6495
Line 18 : total basis : $5 ( include this amount in 2023 line 4b)
Line 14 is not the same as the amount in the form 1099 R . Is this ok ?
In short when can she move that $5 to the roth? Can she move it with the $7000 when she contributes to 2024 IRA? Should she clear the traditional IRA to $ 0 before she do another back door this year?
Thank you for helping
