topic Meant to do a backdoor ROTH conversion in Retirement tax questions

Meant to do a backdoor ROTH conversion

TomDx — Wed, 11 Feb 2026 10:40:03 GMT

In April of 2024 I meant to do a $2000 backdoor ROTH conversion, but I mistakenly put it directly into a ROTH. I just realized what I did, so I called Vanguard and they recharacterized the $2000 contribution plus $300 in earnings to my Traditional IRA which had a 0.00 balance at the start of the year. That would be fine except I now have $300 pretax money in my traditional IRA and I'm not eligible to contribute pretax money. What can I do.

Thanks

Tom

Re: Meant to do a backdoor ROTH conversion

fanfare — Thu, 24 Oct 2024 02:33:21 GMT

Your $300 moved with the recharacterization is not a contribution, it is now in your IRA.

you can make your $2,000 contribution non-deductible.

If you want to convert your contribution to a Roth, convert "entire amount" on your request to the custodian.

You will pay income tax on the $300.

It is not a problem.

@TomDx

Re: Meant to do a backdoor ROTH conversion

fanfare — Thu, 24 Oct 2024 02:40:14 GMT

recharacterization: the original amount to the first IRA you report as contribution to the second IRA, earnings move but are ignored.

report this on your tax return for the year during which the contribution was made.
Treat the contribution as having been made to the second IRA on the date that it was actually made to the first IRA.

@TomDx

Re: Meant to do a backdoor ROTH conversion

dmertz — Thu, 24 Oct 2024 03:18:32 GMT

You recharacterized $2,000, not $2,300. $2,300 is the amount transferred and the $300 simply became earnings in your traditional IRA, not a regular contribution to your traditional IRA.

Re: Meant to do a backdoor ROTH conversion

TomDx — Thu, 24 Oct 2024 03:50:32 GMT

So the IRS will look at the $300 as traditional earnings and not a contribution, even though at the end of 2023 the tradition balance was 0.00?

Thanks

Re: Meant to do a backdoor ROTH conversion

fanfare — Fri, 25 Oct 2024 17:57:38 GMT

Your 5498 will report a contribution of $2,000.

@TomDx