Is now March too late to contribute for 2023 traditional ira and do the back door before I file my income tax on 4/15/24 and how to enter the backdoor ?

[Nari12]

I want to contribute $6500 (after tax money) to 2023 IRA then do the backdoor right after i contribute. Do I need and  Will I get a 1099-R to file the tax 2023?

How to enter the back door since all the contribution is done between January and 4/15/24? Turbo keep saying that all $6500 is fully taxable. 

Thanks

[Bsch4477]

You would be making your traditional IRA 2023 contribution before April 15. Then you would be doing your conversion in 2024. So you would pay tax on the conversion on your 2024 return which you would prepare in 2025. 

[Nari12]

Thank you for your response.

I am still confused on how to report the contribution for 2023.  What step in the tubo tax I should enter the information and how to response to each question 

1-Do I need to fill out the wage/income section Retirement /IRA in turbo. Will turbo generate form 8606 for 2023?

2- I plan to contribute $7000 for 2024 also. Can I convert both of them in the same year 2024?

[RachelW33]

To report your 2023 non-deductible Traditional IRA contribution on Form 8606, please follow these steps from this TurboTax Help Article:

1. Sign in to your TurboTax account
2. Open your return if it’s not already open
3. Select Federal from the menu, then Deductions & Credits
4. Locate the Retirement and Investments section and select Start next to Traditional and Roth IRA Contributions
5. Check the Traditional IRA box and select Continue
6. Answer No to the question, Is This a Repayment of a Retirement Distribution?
7. On the screen, Tell Us How Much You Contributed, enter the amount contributed and select Continue
8. Answer No on the screen Did You Change Your Mind?, then answer the questions on the following screens.
9. When you reach the Choose Not to Deduct IRA Contributions screen, select Yes, make part of my IRA contribution nondeductible, enter the amount you contributed, then select Continue. If none of your contribution can be deducted, you won't see the option to make part of it nondeductible. Instead, the full amount of your contribution will automatically be nondeductible.
10. Select Continue on the Your IRA Deduction Summary screen

Yes, you can convert both your 2023 and 2024 contributions in 2024.