bicker wrote:I'm sorry I'm still trying to wrap my head around some of this... Why is there any deadline for converting to Roth? The contributions to the tIRA need to be made by April 15, to be considered prior-tax-year IRA contributions, but I am under the impression that you can convert the tIRA anytime after that. The sooner the better, yes, but I don't recall any kind of deadline.
Roth conversions done in calendar 2012 are handled by the 2012 tax return.
Conversions done in calendar 2013 are handled by the 2013 tax return.
Scenario 1: 2012 Traditional IRA contribution on Dec 1, 2012 followed by Roth conversion on Dec 3, 2012.
2012 Tax return and 2012 Form 8606 will handle the IRA contribution and the conversion.
Scenario 2: 2012 Traditional IRA contribution on April 15, 2013 followed by Roth conversion on April 16, 2013.
2012 Tax return and 2012 Form 8606 will handle the IRA contribution.
2013 Tax return and 2013 Form 8606 will handle the Roth conversion because it happened in calendar 2013.
Some folks have made IRA contributions for years but could not convert them until the rules changed in 2010 to allow folks with MAGI over 100K to convert to Roth IRA. Once the income limit was removed for Roth conversion, it opened the backdoor into Roth IRA.