Back Door Roth Conversion - Form 8606

[Wyldaisy]

Hell, 

In calendar 2022 I did a backdoor Roth contribution and conversion in calendar year 2022.  For tax year 2023,I did a back door Roth contribution and conversion in January 2024 for calendar year 2023.  I did not make any contributions or conversions at any time for tax year 2024.

Form 1040 for calendar 2024 shows the $7500 in box4a. Line 4b - taxable amount is $0 in form 1040.

For my Form 8606-T for calendar year 2024, the following boxes are populated. Is this correct? I feel like a lot more boxes populated than in prior years?  

• Line 1 - $0
• Line 2 $7,500
• Line 3 $7,500
• Line 5 $7,500
• Line 8 $7,500
• Box 9 $7,500
• Box 10 - x 1.000
• Box 11 - $7,500
• Line 13 $7,500
• Line 14 $0
• Line 16 $7,500
• Line 17 $7,500

I will not be doing any further Roth Back door contributions, so I assume no Tax for 8606-T will generate for calendar 2025?  Thank you for your help.

[MindyB · Accepted solution]

Yes, the amounts you have reported look correct, and no you will no longer need to file an 8606 if you have no nondeductible IRAs to track.

The reason that you have more lines populated in 2024 than in 2022 is because when you made the contribution in 2024 for 2023 that created a 2023 ending balance in 2023 since the conversion wasn't done until 2024.  (You cannot accelerate the conversion- it gets reported in the year you receive the 1099-R, 2024 in your case.)

[Popeye2000]

If one does a back door Roth contribution for 2024 in 2025 prior to April 15, can one do another back door Roth contribution for 2025 in 2025?

[AnnetteB6]

Yes.  The non-deductible contribution is actually being made to a Traditional IRA.  So as long as you do not exceed your contribution limits you can make the contribution to the Traditional IRA and then convert it to the Roth IRA.

There is an annual limit for contributions to IRA accounts, but there is not a limit to converting a Traditional IRA to a Roth IRA.

@Popeye2000 

[Popeye2000]

So can one make 2024 and 2025 non-deductible contributions to one's first, newly established traditional IRA one after the other prior to 4/15 and then do a single Roth conversion of the total, with no taxes due if there was no gain in the account?

Appreciating your help with this.

[SusanY1]

Yes, so long as the individual has no other Traditional IRA accounts with any balance (including rollover accounts). 
@Popeye2000