Hello,
I plan on contributing 7K to 2024 traditional IRA , and 7K to 2025 traditional IRA, both on 4.9.25 (still before filing deadline, so it is possible).
But I would like to convert both years traditional contributions to Roth (through the backdoor process). but because of my late contribution, and the time it takes to make the cash available to withdraw to make the roth conversion, I am sure the roth conversion can happen only after the filing deadline. I am high income earner, and I have no other traditional IRA contributions for either years.
Now my question is this:
1. If the roth conversion happens after the filing deadline, would it all together fall as 14K roth conversion for the year 2025, and 1099-R for 2025 would reflect that, and that wouldn't be a problem if I pay the tax due because of the conversion, when I file taxes by 2026 deadline?
2. And for filing 2025 taxes (which I am in the process of doing right now), I would just declare that I made 7K contribution to 2024 Traditional IRA, is that right?
3. The other question is, before the roth conversion can happen, the traditional IRA is going to gather some interest, making the amount 7K plus for each year. Now do I convert only 7K out of that, for each year or should I convert the whole amount including the interest gained. I would like to convert all if possible.
Thanks for your advice on this matter.
