topic Excess 2023 Trad IRA Cont converted to Back Door Roth - Correcting in same tax year in Retirement tax questions

Excess 2023 Trad IRA Cont converted to Back Door Roth - Correcting in same tax year

erick307 — Wed, 11 Feb 2026 03:06:25 GMT

Contributed $7,500 (excess $1,000 contribution) to non deductible IRA in 2023, then converted through back door Roth in 2023. Need to remove excess and earnings before filing taxes. Is it proper to remove from Roth back to Trad IRA, then remove from Trad IRA, which replicates contribution steps?

If so, is it right to then report the correct $6,500 nondeductible contribution in 2023, and deal with any 2024 correction tax forms next year? Thanks.

Re: Excess 2023 Trad IRA Cont converted to Back Door Roth - Correcting in same tax year

fanfare — Fri, 16 Feb 2024 21:10:05 GMT

[[ removed ]]

@erick307

Re: Excess 2023 Trad IRA Cont converted to Back Door Roth - Correcting in same tax year

fanfare — Fri, 16 Feb 2024 21:09:08 GMT

I'm removing my initial response because I didn't think it through carefully.

@erick307

Re: Excess 2023 Trad IRA Cont converted to Back Door Roth - Correcting in same tax year

fanfare — Fri, 16 Feb 2024 23:00:23 GMT

"Need to remove excess and earnings before filing taxes."

No, you need to remove excess and earnings before converting to Roth.

You now have an excess contribution of $1,000 plus earning that you did not take out

HOWEVER,

if you brought the Traditional IRA balance to zero . the excess and the penalty should go away.

You will pay tax on the $1,000 plus earning due to the conversion with a basis of $6,500.

the $1,000 plus earnings is in the Roth via the back door.

There's no correction to be done next year.

@erick307