Backdoor Roth Next Year

Forum|Forum|3 years ago
January 2, 2023
3 replies
19 views

Due to timing, my $4,000 non deductible contribution into my traditional IRA was still in my Traditional IRA as of 12/31/22 and comprised the full balance. I want to convert this to a Roth.
To avoid being taxed again as distribution when I convert to Roth in 2023, would filing form 8606 for the non deductible contribution in 2022 make this work as intended when converting the $4,000 to Roth in 2023?

Not A Product Question

Anonymous_

Level 15

@dmertz

dbo12Author

Level 2

For clarity, the $4,000 is my full IRA balance.

Hal_Al

Level 15

Q. To avoid being taxed again as distribution when I convert to Roth in 2023, would filing form 8606 for the non deductible contribution in 2022 make this work?

A. Yes. The filing of form 8606 for a non deductible 2022 contribution is mandatory, whether or not you plan to convert it in 2023. TurboTax will generate form 8606 automatically, when you designate, in the interview, that the 2022 contribution is a non deductible Traditional IRA contribution.