Contribute tp Backdoor Roth IRA before 4/18/2023 Deadline For Tax Year 2022

[ta_nyc]

Hi -

I would like to contribute to a Backdoor Roth IRA for Tax Year 2022 before April 18, 2023 deadline. I would like to contribute the max amount for Tax Year 2022 which is $6,000.

The reason I am choosing a Backdoor Roth IRA  is because my Modified Adjusted Gross Income (MAGI) is between $129K-$144K.

1. Can I contribute the full $6,000 to the Backdoor Roth IRA for Tax Year 2022 before April 18, 2023 deadline if my MAGI is between $129K-$144K and not over $144K?

2. If I contribute the full $6,000 to the Backdoor Roth IRA for Tax Year 2022 before April 18, 2023 deadline do I need to file Tax Form 8606 for Tax Year 2022 or Tax Year 2023?

3. If I contribute the full $6,000 to the Backdoor Roth IRA for Tax Year 2022 and the full $6,500 to the Backdoor Roth IRA for Tax Year 2023 before April 18, 2023 deadline can I file Tax Form 8606 for tax year 2022 for both contributions of $6,000 (2022) and $6,500 (2023)?

Look forward to hearing from you.

Thank you!

[AnnetteB6]

Contributing to a 'back door' Roth is actually making a non-deductible contribution to a Traditional IRA and then converting the Traditional IRA to a Roth IRA.  

That being said:

1 - You can make the full $6000 non-deductible contribution to a Traditional IRA for 2022 before the tax deadline of April 18, 2023 without regard to your MAGI because you are not contributing directly to a Roth IRA.

2 - You will include the 2022 non-deductible Traditional IRA contribution on your 2022 tax return, which will include Form 8606 showing that 2022 $6000 contribution.

3 - If you make non-deductible Traditional IRA contributions for both 2022 and 2023, you will report the 2022 contribution on your 2022 tax return and you will report the 2023 contribution on your 2023 tax return.

Then, after you have made both the 2022 and 2023 contributions to the Traditional IRA and converted the Traditional IRA to a Roth IRA, you will receive a 2023 Form 1099-R reporting the distribution from the Traditional IRA.  This Form 1099-R will be reported on your 2023 tax return.  

Use the steps below to get started reporting your 2022 non-deductible Traditional IRA contribution:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner) 
• This opens a box where you can type in “IRA contributions” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to IRA contributions”
• Click on the blue “Jump to IRA contributions” link and enter your information

[ta_nyc]

Thank you so much! I understand now.