Contributing to an IRA for the year 2023 after filing your 2023 taxes.

[Ig-sdlo]

I've already filed my 2023 taxes using TurboTax and received the refund. I made a small contribution to my IRA during 23, converted it to a Roth IRA, and included everything in the tax return.

Now, I want to contribute up to the 2023 IRA limit and convert it to a Roth IRA again. The issue is that I've already filed my 2023 taxes.

Question: Can I still contribute to the 2023 IRA (non deductible) before the April deadline? If yes, do I need to file a 2023 amendment right away, or can I report it in the 2024 tax year?

[dmertz · Accepted solution]

You have until April 15 ,2024 to make a traditional IRA contribution for 2023.  If you do so, you'll need to amend your 2023 tax return to report the contribution as being either deductible on Schedule 1 or nontaxable on Form 8606.

A Roth conversion performed in 2024 will be reportable on your 2024 tax return.

[Ig-sdlo]

Thank you, @dmertz @

Do you have any insight into the timeline for these actions and the overhead with the brokers? 

I deposit a non-deductible $1000 into my IRA today: 03/16.

1. How many days should I expect to receive the 8606 form, within a week?

2.If I receive the 8606, I will proceed with the tax amendment using the form. What happens if I don't receive it on time?

3.I convert to a Roth IRA and report it on my 2024 taxes. Can this conversion happen before or after the amendment? That doesn't impact my 2023 amendment?

[AnnetteB6]

You will not receive a Form 8606 from anyone.  It is created in your tax return when you indicate that you have make a non-deductible Traditional IRA contribution.  This means that when you create your amended return to report the non-deductible contribution, the Form 8606 will be created and filed with the amended return.

Converting the Traditional IRA to a Roth IRA has no impact on your 2023 amended tax return.  The timing of the conversion does not matter.  Since it is going to be done in the 2024 calendar year, you will receive a 2024 Form 1099-R reporting the distribution from the Traditional IRA which you will enter into your 2024 tax return showing that it was converted to a Roth IRA.  Having the Form 8606 from your 2023 amended return will make the conversion a non-taxable event.

Take a look at the following TurboTax help article for more information about reporting a back door Roth IRA conversion.  Pay close attention to the part reporting the non-deductible IRA contribution because that is what you will need to do with your amended 2023 return.  The other part will be done on your 2024 return after you get the Form 1099-R.

How do I enter a backdoor Roth IRA conversion?
 

@LG-sdlo

[Ig-sdlo]

Thanks @AnnetteB6 

Should I wait for the official 5498 form at least to have the right numbers, or just enter the amounts directly when amending?

[AnnetteB6]

The Form 5498 will not be issued until after the tax return deadline of April 15, 2024.  You will need to decide how much more you wish to contribute to the IRA and include that additional amount as part of your amended return.  

You stated that you have already made one contribution which should be shown in your return when you start the amended return.  Just change that contribution amount to the total that you wish to contribute, then make the contribution before the tax return due date.

Remember, all you are doing for the 2023 amended return is reporting that you are making a larger non-deductible Traditional IRA contribution.  Anything related to converting that Traditional IRA to a Roth IRA will be reported on your 2024 tax return, not the 2023 return.

@Ig-sdlo