reversal of 2024 and 2025 ROTH IRA contributions & making a 2025 ROTH IRA contribution by converting a Traditional IRA contribution
I’m hoping someone can help me out….and I apologize in advance if I am not using the correct tax terms.
In summer 2025, I found out I was not eligible (income too high) to make ROTH IRA contributions in 2024 and 2025. I was told I could make “back door” ROTH IRA contributions by first contributing to a Traditional IRA (no income restrictions and can contribute up to $8000), then converting the Traditional IRA contributions into a ROTH IRA.
So that is what I did, but I need help to document this on my 2025 tax return.
The following is the chronology of events:
14 October 2025 - I called my ROTH IRA custodians (T.RowePrice and Vanguard) to reverse the 2024 ROTH IRA contributions.
The amount I received from T.RowePrice (TRP) is broken down as follows:
- $2300 from 2024 ROTH IRA contributions made in 2024
- $683.14 from earnings on the 2024 ROTH IRA contributions made in 2024
- $230 from 2024 ROTH IRA contributions made in January 2025
- $43.65 from earnings on the 2024 ROTH IRA contributions made in 2025
(TRP total 1: $3256.79)
The amount I received from Vanguard (VAN) is broken down as follows:
- $3220 from 2024 ROTH IRA contributions made in 2024
- $720.11 from earnings on the 2024 ROTH IRA contributions made in 2024
- $460 from 2024 ROTH IRA contributions made on 14 April 2025
- $102.87 from earnings on the 2024 ROTH IRA contributions made in 2025
(VAN total 1: $4502.98)
26 November 2025 - I called TRP and VAN to reverse the 2025 ROTH IRA contributions I made.
The amount I received from TRP is broken down as follows:
- $1150 from 2025 ROTH IRA contributions made in 2025
- $63.81 from earnings on the 2025 ROTH IRA contributions made in 2025
(TRP total 2: $1213.81)
The amount VAN distributed for 2025 contributions and earnings is broken down as follows:
- $1150 from 2025 ROTH IRA contributions made in 2025
- $172.50 to cover the federal tax (15%)
(VAN total 2: $1322.50)
- The $1322.50 was put into a VAN settlement fund.
1 December 2025 – The $1322.50 that was held in the VAN settlement fund was used to contribute to a VAN Traditional IRA fund. However, for reasons I still do not understand, only $1314.75 was contributed to the VAN Traditional IRA.
9 December 2025 – I called VAN to convert the amount in my VAN Traditional IRA ($1314.75) into my VAN ROTH IRA. Over the 8 days from contributing to the VAN Traditional IRA, the $1314.75 amount grew to $1315.86. $1315.86 from my VAN Traditional IRA was converted to my VAN ROTH IRA.
23 December 2025 - I contributed $4470.60 into my TRP Traditional IRA. Note, the $4470.60 is the sum of amount I received from TRP on 14 October ($3256.79) and 26 November ($1213.81)
29 December 2025 – I called TRP to convert the funds in my TRP Traditional IRA into my TRP ROTH IRA. The $4470.60 that was originally contributed on 23 December 2025 grew to $4473.17 on 29 December 2025. Of the $4473.17, $3579.05 was converted to my TRP ROTH IRA and $894.12 was held for federal taxes.
TRP sent me the following tax forms:
TRP#1 1099-R box 1: $1487.46; box 2a: $107.46; box 7: J8 distribution code
TRP#2 1099-R box 1: $2983.14; box 2a: $683.14; box 7: JP distribution code
TRP#3 1099-R box 1 : $4473.17; box 2a: $4473.17; box 2b : taxable amount not determined-checked; total distribution-checked; box 4: $894.12; box 7: 2 distribution code; IRA/SEP/SIMPLE-checked
Reverse engineering the TRP math, I figured out the following:
TRP#1 1099-R box 1 ($1487.46) shows the 2025 ROTH IRA contributions made in 2025 ($1150) and earnings ($94.69) PLUS the 2024 ROTH IRA contributions made in 2025 ($230) and earnings ($12.77). The earnings ($94.69 + $12.77) equals the taxable amount shown in box 2a ($107.46)
TRP#2 1099-R box 1 shows the 2024 ROTH IRA contributions made in 2024 ($2300) and earnings ($683.14). The earnings $683.13 is the taxable amount shown in box 2a.
VAN sent me the following tax forms:
VAN#1 1099-R box 1: $597.16; box 2a: $137.16; box 4: $34.29; box 7: J8 distribution code
VAN#2 1099-R box 1: $4180.15; box 2a: $960.15; box 4: $240.04; box 7: JP distribution code
VAN#3 1099-R box 1: $1314.75; box 2a: $0; box 7: N distribution code
VAN#4 1099-R box 1: $1315.86; box 2a: $1315.86; box 2b: taxable amount not determined-checked; total distribution-checked; box 7: 2 distribution code; IRA/SEP/SIMPLE-checked
Reverse engineering the VAN math, I figured out the following:
VAN#1 1099-R box 1 ($597.16) is the sum of 2025 VAN ROTH IRA contributions I made in 2025 ($460) PLUS earnings ($137.16). The earnings is the taxable amount shown in box 2a.
VAN#2 1099-R box 1 ($4180.15) is the sum of 2024 VAN ROTH IRA contributions made in 2024 ($3220) PLUS earnings ($960.15). The earnings is the taxable amount shown in box 2a.
NOTE, I did not do anything with the $4502.98 I received from VAN on 14 October 2025. This $4502.98 is sitting in my bank checking account.
Can someone please walk me through this and tell me what numbers need to be entered onto which lines on the various forms and worksheets (eg. IRA Contrib Wks, IRA Info Wks, Form 5329)?
I am so sorry to write such a long post. But I wanted to provide as much information as I could so the correct solution can be determined.
Thanks so much for the help!!
