This year, I encountered a unique situation with my IRA accounts:
2024 Contribution Delay: Typically, I make a non-deductible contribution to my Traditional IRA each year and then convert it to a Roth IRA (backdoor Roth) due to my high-income bracket. However, I forgot to make the 2024 contribution during the year and ended up making it in the first week of 2025 for the 2024 tax year.
- At the time of this contribution, my Traditional IRA balance was $0.
- I made the contribution, then converted the entire balance to my Roth IRA. After the conversion, the Traditional IRA balance returned to $0.
401(k) Rollover to Traditional IRA: Recently, one of my previous employers closed their 401(k) plan and requested that I roll over the funds. The rollover option allowed me to transfer the funds to my Traditional IRA.
- I provided my Traditional IRA account details, and the employer issued a check payable to my brokerage with the Traditional IRA account number.
- If I deposit this rollover check into my Traditional IRA and then convert the entire balance to my Roth IRA, I understand I will need to withhold taxes on the converted amount. How should I handle the tax withholding in this case?
Future Contributions for 2025: At the end of 2025, I plan to make my 2025 non-deductible contribution to the same Traditional IRA, convert it to my Roth IRA, and ensure the Traditional IRA balance is again $0.
Since all of these transactions involve the same Traditional IRA account, will this cause any complications when filing taxes? Additionally, what forms will I need to submit for accurate reporting of these transactions?
