Backdoor Roth Timing Issue 2024/2025

rsqpgh · ‎January 22, 2026

Working on my 2025 taxes and realized I never filed a 2024 Form 8606.

Facts:

Only have 1 Trad IRA and 1 Roth IRA. Trad IRA had 0 basis at the end of 2023
On December 16, 2024, I contributed the full non-deductible amount ($8,000) to my Trad IRA
My financial institution held the money because it came from a new bank account (I messed up on this, I know) and would allow me to convert to my Roth IRA until mid-January
- Received a dividend on Dec 31, 2024 to make my EOY 2024 balance $8,013
- Completed the Roth conversion of $8,013 from tIRA to rIRA on January 13, 2025
Did complete a 2025 Roth conversion in July of 2025
Did not get a 2024 1099-R for my tIRA, did receive the 2024 5498 in May 2025 showing fair market value of $8,013
Using the other big software package which does not like calculating Roth conversions, it never included form 8606 when I filed my 2024 taxes
Received my 2025 1099-R for my tIRA showing $16022 for my 2024 and 2025 conversions to rIRA
End of 2025 basis for tIRA is 0

I recognize that I need to go back and submit a 2024 8606. My questions are:

Is the $8k 2024EOY basis mean I owe taxes for 2024? If so, how does that get billed to me since filing a standalone 2024 8606 does not provide a means to pay?
How do I record this in TurboTax online for 2025?

Thanks!!

MindyB

No, your $8,013 balance at the end of 2024 does not create taxable income. Since the contribution was non-deductible, and you did not take the deduction, the only thing missing is the informational 8606. You can go ahead and paper file that now. Without cause for filing Form 8606 late, there is a small penalty of $50. See: About Form 8606, Nondeductible IRAs to get a pdf form and fill it out.

You will record the $16,022 for years 2024 and 2025 both in 2025, since that is when the conversions took place. It is a nontaxable event, except for the returns of $22 you earned.

The first step is to enter your nondeductible contributions for 2025. You can find this in TurboTax under Deductions & Credits > Your tax break screen > Retirement and Investments > Start or Revisit next to Traditional IRA and Roth IRA. Here, enter the 2025 contribution of $8,000, but continue through the interview until you reach the question "Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?" Select yes and enter the cost basis of $8,000 from your 2024 contribution.

After you have entered the 2025 and 2024 nondeductible contributions, enter the conversions. Here are the steps:

Go to Wages & Income.
On the Your income screen, locate and select the Retirement Plans and Social Security section, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
Answer Yes to Did you get a 1099-R in 2025?, then Continue until you are able to enter the 1099-R. Note, if you land on the screen Review your 1099-R info select Add Another 1099-R.
Select how you want to enter your 1099-R (import or choose Change how I enter my form to either upload it or type it in yourself) and follow the instructions.
Answer the questions on the following screens, until you reach Tell us if you moved the money through a rollover or conversion.
Select I converted some or all of it to a Roth IRA and Continue.
Next, choose Yes, all of this money was converted to a Roth IRA and Continue..
Continue answering questions until you come to the screen Review your 1099-R info."

dmertz

Basis at the end of 2024 was $8,000, not $8,013, but MindyB is correct that there was no IRA distribution in 2024 that would have added any taxable income on your 2024 tax return.

The $8,000 of basis on line 14 of the 2024 Form 8606 that you must file will transfer to line 2 of your 2025 Form 8606. Unless you transfer in your amended 2024 TurboTax tax file to begin your 2025 tax return, you'll need to correct your basis in 2025 TurboTax in the pages that follow clicking the Continue button on the page that lists the Form 1099-R that you have entered.