Go ahead and make your non-deductible $7000 Traditional IRA contribution for 2024 and be sure to report it on your tax return. That is the first step for the backdoor Roth IRA conversion.
Also, make your $7000 non-deductible Traditional IRA contribution for 2025. This will be reported on your 2025 tax return.
Then, when you do convert the $14,000 plus earnings to a Roth IRA later in 2025, you will receive a Form 1099-R for 2025 reporting this distribution. The Form 1099-R will be included on your 2025 tax return where you will indicate that the money was converted to a Roth IRA. The only portion of the distribution from the Traditional IRA that will be taxable is the earnings that were added to the account during the time between the contributions and the conversion to the Roth IRA.
As long as you can get the 2024 Traditional IRA contribution made before the April 15th deadline and report it on your tax return, there is no need to file an extension so that the rest of the process can be completed. There is no rush to make the 2025 contribution or to do the conversion, other than to reduce the possible earnings in the Traditional IRA account before it is converted.
@Getemdun
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