Back-door Roth Conversion - 1 cent left in Traditional IRA

[catdelta]

Hi there,

1. On 12/26, I funded my Traditional IRA .

2. Also on 12/26, I request to fully convert it to my Roth IRA.

3. The conversion was done on 12/29 (only 1 business day).

4. Today (12/30), I found 1 cent in the Traditional IRA.

I have submitted another request to convert the 1 cent to the Roth again.  Hopefully they can have it done tomorrow.

If not, do I still need to do the pro-rata tax calculation or 1 cent would just be omitted by both my broker and IRS?

Thank you very much for taking a look at my stupid question!

[dmertz · Accepted solution]

While there is nothing wrong with converting that $0.01, doing so wont make any difference on your 2025 tax return or any future tax return.  Either way, Form 8606 is required to be included in your 2025 tax return and the $0.01 rounds to zero in the pro rata calculation on that form.

It probably would have been more reasonable to just leave the $0,01 in the traditional IRA and include it in any future Roth conversion, backdoor or otherwise.

[catdelta]

Thank you very much for your guidance!