Rollover IRA

[gulsheenk]

Please see transaction dates below for 2022 contribution in 2023. I do not have a 1099 form as I contributed to my traditional IRA account a couple of days ago in 2023. 

3.You transferred or rolled over the pre-tax IRA at Fidelity into the workplace plan of your current employer.

Transaction date :  3/21/2023

4. You made a $6000 non-deductible contribution to a traditional IRA in February 2023 but designated it for the 2022 tax year. 

Transaction date :  3/21/2023

5. You converted the $6000 IRA to a Roth IRA in February 2023 (a "back door Roth conversion".)

Transaction date :  3/22/2023

Yes, my tax return includes form 8606-T 

I hope this helps, 

Gulsheen

[Opus 17]

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@gulsheenk wrote:

Please see transaction dates below for 2022 contribution in 2023. I do not have a 1099 form as I contributed to my traditional IRA account a couple of days ago in 2023. 

3.You transferred or rolled over the pre-tax IRA at Fidelity into the workplace plan of your current employer.

Transaction date :  3/21/2023

4. You made a $6000 non-deductible contribution to a traditional IRA in February 2023 but designated it for the 2022 tax year. 

Transaction date :  3/21/2023

5. You converted the $6000 IRA to a Roth IRA in February 2023 (a "back door Roth conversion".)

Transaction date :  3/22/2023

Yes, my tax return includes form 8606-T 

I hope this helps, 

Gulsheen

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It would have been clearer if you had completed the rollover of the IRA into the new workplace plan a few days or weeks before making the non-deductible contribution.  I think your backdoor Roth will probably work when you report it on your 2023 tax return, but the fact that the new contribution came in on the same day the rollover when to your new employer makes me a bit concerned.  @dmertz  do you think this is going to be ok?

[gulsheenk]

I checked in my Fidelity account and in their system, the transaction complete dates are as follows:

3.You transferred or rolled over the pre-tax IRA at Fidelity into the workplace plan of your current employer.

Transaction date :  3/21/2023

4. You made a $6000 non-deductible contribution to a traditional IRA in February 2023 but designated it for the 2022 tax year. 

Transaction date :  3/22/2023

5. You converted the $6000 IRA to a Roth IRA in February 2023 (a "back door Roth conversion".)

Transaction date :  this is still processing.  I will call them shortly

Thanks!

[dmertz]

"but the fact that the new contribution came in on the same day the rollover when to your new employer makes me a bit concerned"

I have no concerns about this.

[gulsheenk]

Thanks!  @Opus 17 : Just now, I got off from Fidelity's retirement representative and he confirmed as well, there should be no issue with these transactions and that prorata rule kicks in towards the end of the year. Since my traditional IRA account value will be $0 at the end of the year, pro rata rule will not kick in. 

Regarding funds not transferred from traditional IRA to Roth IRA account, there's indeed an issue.  The fidelity representative who had generated deposit slip for the initial transaction from Traditional IRA to Employer's 401K account, selected to close the traditional account.  Now the backend team has fixed it and deleted the transaction to send me residual check of $6K.  I should be able to do Backdoor Roth (move funds from Traditional IRA to Roth IRA) on Monday (3/27).