Traditional ira to roth ira

[user17579950372]

I’ve made contributions to my traditional IRA in the last 2 years (2024,2025).  Both years my income has been above the minimum, around 200k, and couldn’t contribute to a Roth. Currently my account has 16k, 14k contributions me 2k capital gains.  I want to convert my traditional Ira to a Roth but I am unsure about the amount that will be taxed as ordinary income. Could you please help me? 

thank you 

[AmeliesUncle]

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@user17579950372 wrote:

14k contributions

I want to convert my traditional Ira to a Roth but I am unsure about the amount that will be taxed as ordinary income.

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Were the $14,000 of Traditional IRA contributions deductible?  Or were they not deductible?

[EDIT:  I just saw one was for 2025, so I'll revise the question to "Was the $7,000 for 2024 deductible?"]

Any other Traditional IRA accounts, including SEPs or SIMPLEs?

[Opus 17]

I am going to assume here, 

1. the traditional IRA contributions for 2024 were not deductible (because you were over the income limit for a deduction),

2. your 2024 return documents those non-deductible contributions on form 8606,

3. you plan your 2025 contributions to also be non-deductible,

4. you have no other traditional pre-tax IRA funds anywhere (all IRA funds are combined for tax purposes even if they are at different brokers). 

In that case, you convert the entire IRA account and only the gain (earnings more than the contributions) are taxable.

If any of those assumptions are not true, we need more information. 

[user17579950372]

Your assumptions are correct but i just checked my tax return from 2024 - it looks like the turbo tax expert that did my taxes did  not include a 8606 form. However a 5408 form is available on my fidelity account. What do I do?

[Opus 17]

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@user17579950372 wrote:

Your assumptions are correct but i just checked my tax return from 2024 - it looks like the turbo tax expert that did my taxes did  not include a 8606 form. However a 5408 form is available on my fidelity account. What do I do?

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Form 5498 is produced by the broker for your records, it is not filed with any tax return.

At some point before filing your 2025 return, you need to file an amended 2024 return to report the non-deductible IRA contribution.  Contact your expert or customer support for assistance.  

Then, you will need a copy of the 2024 tax return including form 8606 to prepare your 2025 tax return, that will contain the 2025 traditional IRA contribution and the Roth conversion. 

[fanfare]

The forum should open a new Box under Discussions->Taxes  called

"Get your excess/disallowed IRA contributions straightened out with IRS"

[baldietax]

if you're only missing the 8606 from your return to record the basis on a nondeductible contribution you made for 2024, and it didn't affect the tax return othewise, I don't think you need to amend your return you just need to send in the 8606; see comments at the end of this article for similar situation

https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-...

If your conversion includes contributions made in 2024 for 2023, you'll need to check your 2023 return to make sure it includes Form 8606, Nondeductible IRAs. If this form isn't included in your 2023 return, you'll need to fill out a 2023 Form 8606 to record your nondeductible basis for conversion, and mail this form to your designated IRS office. Don’t amend your 2023 return to record your basis.

[user17579950372]

My first ever contributions to a traditional IRA were in 2024, I did not made any contributions in prior years. Just opened an account and stayed contributing throughout the year.  I will reach out to turbo tax assistance to see if they can help me since I used full service. 

thank you all for your responses. This has been extremely informative and helpful. 

[AmeliesUncle]

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@user17579950372 wrote:

it looks like the turbo tax expert that did my taxes did  not include a 8606 form. 

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Was the contribution deducted?  Look at line 20 of Schedule 1.

[user17579950372]

My tax return does not include a Schedule 1 form..