is it too late for backdoor roth?

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omega
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is it too late for backdoor roth?

Post by omega » Mon Apr 17, 2017 9:01 am

I recently learned about backdoor roth IRA. We have already filled our tax return for 2016. Is it too late for us to do backdoor roth IRA for the year 2016?

Thanks for your inputs!

livesoft
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Re: is it too late for backdoor roth?

Post by livesoft » Mon Apr 17, 2017 9:02 am

Nope.
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EATaxGuy
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Re: is it too late for backdoor roth?

Post by EATaxGuy » Mon Apr 17, 2017 9:02 am

You have until midnight tomorrow (April 18) to get the money into the traditional IRA. You can make the conversion to a Roth at any time after that.

File an 8606 after you make the non-deductible contribution. You don't need to amend the 2016 return, just file an 8606.
Last edited by EATaxGuy on Mon Apr 17, 2017 9:04 am, edited 1 time in total.
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Rainmaker41
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Re: is it too late for backdoor roth?

Post by Rainmaker41 » Mon Apr 17, 2017 9:03 am

If you are very very fast, you can get the 2016 traditional IRA contribution in by the 18th. Then, convert it to Roth at your discretion and leisure.
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omega
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Re: is it too late for backdoor roth?

Post by omega » Mon Apr 17, 2017 9:34 am

Thank you all for the quick reply. I just transferred the money (5500 USD) to traditional IRA and will convert to Roth in few days. I have question regarding filing Form 8606. Should I file this immediately or wait until the Roth conversion? Also, is there any online submission for this?

Thanks again :)

ruud
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Re: is it too late for backdoor roth?

Post by ruud » Mon Apr 17, 2017 9:39 am

The Roth conversion will be on your 2017 tax return in any case, it has no bearing on the 8606 you file for the 2016 contribution.
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omega
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Re: is it too late for backdoor roth?

Post by omega » Mon Apr 17, 2017 10:24 am

Thanks rudd. To be clear, I can file 8066 next year even though the contribution is for 2016. Is this correct?

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Duckie
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Re: is it too late for backdoor roth?

Post by Duckie » Mon Apr 17, 2017 5:16 pm

omega wrote:To be clear, I can file 8066 next year even though the contribution is for 2016. Is this correct?
You fill out Part I of IRS Form 8606 and file it now for the 2016 contribution. This form is allowed to be filed on its own, so send it in via snail-mail. You will fill out Part II and file it next year for any conversion made in 2017. If you do the backdoor method again for 2017, then your 2017 form will cover both Part I for the 2017 contribution and Part II for all 2017 conversions.

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