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I may have been filling 8606 incorrectly

Every year since 2022 I have maxed out and done a backdoor Roth IRA. I have never taken any deduction from traditional IRA, on this screen for 8606 should I be putting the full amount that I have maxed out every year? For example in 2025 should I be putting $7000 instead of 0?

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5 Replies
RobertB4444
Employee Tax Expert

I may have been filling 8606 incorrectly

No, this screen is for non-deductible contributions to traditional IRAs.  By doing the backdoor Roth you have zeroed out your contributions to traditional IRAs so the answer here should be zero.

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I may have been filling 8606 incorrectly

The contribution was all after tax money that I pulled from my bank account and made a non deductible contribution to my traditional ira then immediately did the back door roth. So wouldn’t all 7000 be a non deductible contribution?

DawnC
Employee Tax Expert

I may have been filling 8606 incorrectly

Yes, but if you move them to a Roth,  there would be no nondeductible contributions left in your traditional IRA.    If you make a nondeductible traditional IRA contribution, then convert the entire balance to a Roth account - you have no basis in the traditional account.     Are you converting the full amount?   If so, zero is good there.   

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I may have been filling 8606 incorrectly

Yes I am converting the full amount so maybe where I am getting confused is that I put zero in that screen pictured but I have not filled out the 8606 correctly every year showing the full conversion each year but maintaining a zero basis.

RobertB4444
Employee Tax Expert

I may have been filling 8606 incorrectly

You do not have to.  The 8606 is not for your backdoor Roth.  All you need to do here is enter zero.

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