Backdoor Roth IRA conversion

[bikjen19]

I contributed in Traditional IRA and then I did a backdoor Roth IRA conversion. Will I be taxed on that conversion? If so how does that work?

[MarilynG1]

A properly executed Backdoor Roth IRA (non-deductible Traditional contribution + immediate conversion) should not result in taxes, provided you correctly report the transaction in TurboTax to establish a "basis." The conversion is only taxable if you have other pre-tax Traditional IRA balances or if the contribution grew before conversion (earnings).

Here's more info on How to Enter a Back-Door Roth Conversion.

@bikjen19 

[garyl888]

I have a traditional IRA for over 5 years and it had a high value of $15000.  In 2025, I learned about conversion to Roth IRA and the value was down to $11,000.  I received a 1099-R showing my $11,000 withdraw.  Are you saying I won't get taxed on this?   Isn't $11,000 added to my overall income and increases the taxes I have to pay??  

[RobertB4444]

No, that is not a backdoor Roth conversion, that is just a conversion from a traditional IRA to a Roth.  For that conversion you will be taxed and it will add to your income.

Here is some more information on backdoor Roth conversions.  It's really just a long way around to contributing to your Roth when you make too much money to be allowed to do so otherwise.