Roth IRA contributions are not deductible- the contributions are "post tax" so you do not pay tax when you take that amount out later (No tax on the basis (what you put in) or the earnings). Compared to a traditional IRA- if you deduct it now to save taxes today, later when you take it out it is all taxed. If you made nondeductible traditional IRA contributions, you would have basis which is not taxed when you take the money out but you would still have to pay tax on the earnings.
EXAMPLE: If you owe $1 tax on $10 taxable income, you would be able to contribute to a tradition IRA $10 and deduct it. This would make your taxable income 0 so no tax owed.
With the backdoor Roth IRA, you do not claim the deduction and the money moves into the Roth account. This all occurs in the same tax year. People do the backdoor Roth to get the money into the Roth because if you have a certain income level, you are not eligible to contribute to the Roth.
Mechanically, you could deduct the traditional IRA for 2024, then convert it in 2025- you would have to pay the tax on the entire conversion amount, but not until next year (this would be like a tax delay).
@ramanibala
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
