Backdoor Roth -- best way to go forward?

[vincentdemoor]

I currently have 26k in a Traditional IRA from previous lower income years. I wish I could go back to 2020 and have moved it to my employer 403b. But unfortunately, I only realized the pro-rata rule now before sitting down and doing my taxes. I have now moved it all to my employer 403b as of CY2021.

Can I now make a TY2020 backdoor Roth contribution with the conversion happening in CY2021?

When doing taxes for TY2021, what would my basis be?

Thank you!

[macuser_22]

---

@vincentdemoor wrote:

I currently have 26k in a Traditional IRA from previous lower income years. I wish I could go back to 2020 and have moved it to my employer 403b. But unfortunately, I only realized the pro-rata rule now before sitting down and doing my taxes. I have now moved it all to my employer 403b as of CY2021.

Can I now make a TY2020 backdoor Roth contribution with the conversion happening in CY2021?

When doing taxes for TY2021, what would my basis be?

---

Yes.   As long as the total value of all Traditional, SEP and SIMPLE IRA accounts that you have is zero at the end of 2021.

A 2020 Traditional IRA contribution would be reported on your 2020  8606 form line 1.

Enter it as a non-deductible contributioEnter IRA contributions here:
Federal Taxes,
Deductions & Credits,
I’ll choose what I work on (if that screen comes up),
Retirement & Investments,
Traditional & Roth IRA contribution.

OR  Use the "Tools" menu  (if online version under My Account) and then "Search Topics" for "ira contributions" which will take you to the same place.n.

[vincentdemoor]

Thank you!

Would my basis be the amount in my IRA account on 12/31/2020 though? In which case it would be 26k...