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Follow up - Trad IRA to Roth IRA conversion

I do have a follow up question

Background: do not have any trad IRA accts. Created new one with intention of backdoor to Roth IRA.

Made contribution to trad IRA (non-deductible, since spouse and I have 401K through work) for tax year 2024 and tax year 2025 this month (March)

1) Now, if I convert them over to Roth IRA, I believe it will be one transaction for the conversion (and has no relevance to do 2024 vs 2025)

2) How is this reflected on my tax/Form 8606? Since I made the conversion in 2025, so will my 2024 tax return only show a non-ded contribution to Trad IRA? And then my 2025 form 8606 will show the conversion to Roth IRA for both 2024 and 2025 (at that point, I guess the year of contribution won't matter, and it will just be a conversion?) 

3) Is there a reason to not convert the 2025 trad IRA contribution until after April 15th, 2025 for some reason, and only convert the contributed amt (for tax year 2024; but done between Jan 1-APr 15, 2025)?

 

 

 

Thanks in advance! 

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1 Reply
DavidD66
Expert Alumni

Follow up - Trad IRA to Roth IRA conversion

There is no reason to wait to do the conversion for your 2025 contribution.  In fact, if you have any increase in value due to interest or gains (realized or unrealized) the increase will be taxable.  The way you describe how the contributions and conversion will be reflected on your Form 8606 is correct.  

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