I need to adjust my 2015 return.

dante-marinucci — Wed, 05 Jun 2019 21:16:43 GMT

In January 2016, I made an $11,000 contribution to a traditional IRA and then converted that amount in its entirety to a roth IRA (what I understand is a backdoor roth). I intended to have half the amount apply to 2015 and half to 2016 so that I would stay below the limits. I think I need to adjust my 2015 return to reflect this, but I am not certain.

A conversion occurs in the calendar year that it literall...

ChristinaS — Wed, 05 Jun 2019 21:16:46 GMT

A conversion occurs in the calendar year that it literally happened. While you can make a 2015 tax year IRA contribution in 2016 for 2015, the Roth conversion cannot be retroactively applied to 2015.

That being said, with a backdoor Roth, you keep the Traditional IRA contribution nondeductible. So, all else aside, the nondeductible contribution establishes "basis" on Form 8606 and keeps the conversion tax-free**.

If done correctly, the conversion to a Roth isn't taxable anyway. You would have $11,000 in nondeductible Traditional contributions. That would offset the 1099-R for the conversion, with only the earnings being taxable. If you did the conversion close to the contribution, the earnings would be small or nothing at all.

Did you make the $11,000 contribution in 1/2016 for 2016 or for 2015?
Did you have a deduction for the Traditional IRA contributions? (If you make enough money that you need to do a backdoor, it wouldn't make sense for you to have had a deduction)
Do you have the 1099-R for the conversion in 2016? How much is on that? Close to $11,000?

** A conversion is tax free when you don't have anything in a Traditional IRA by the end of the year (in this case, 12/31/2016)

topic I need to adjust my 2015 return. in After you file

I need to adjust my 2015 return.

A conversion occurs in the calendar year that it literall...