Too late for backdoor Roth conversion

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
surfer05
Posts: 40
Joined: Mon May 17, 2021 4:32 pm

Too late for backdoor Roth conversion

Post by surfer05 »

Hi All,
I took too long to realize that my MAGI might exceed Roth IRA contribution limit. Now, I wanted to do backdoor roth like I did it for last 2 years 2021, 2022(after learning about it on this forum).

My question is- can I do backdoor Roth now for 2023?
Step 1: Contribute to tIRA for 2023(I have not done any contribution for 2023)
Step 2: Convert those non-deductible contributions to Roth IRA for 2023.

Or am I too late to do this as I read online this conversion should have happened before Dec 31st 2023.
sailaway
Posts: 7999
Joined: Fri May 12, 2017 1:11 pm

Re: Too late for backdoor Roth conversion

Post by sailaway »

You can still make a 2023 contribution, but the conversion will be 2024. This will make no difference to your funds, only to when the distribution/ conversion is reported.
Underscore
Posts: 4
Joined: Sun Feb 11, 2024 9:04 pm

Re: Too late for backdoor Roth conversion

Post by Underscore »

You can still do a backdoor roth for 2023 provided that you have not yet filed your 2023 taxes. The method for reporting it is:

1. On your 2023 taxes, you claim a traditional IRA contribution of the Roth limit.
2. On your 2024 taxes, you claim a conversion of the 2023 account, plus whatever you did in 2024.

See the section "Late Contributions to the Backdoor Roth IRA" here: https://www.whitecoatinvestor.com/backd ... a-tutorial.
Last edited by Underscore on Sun Feb 11, 2024 10:42 pm, edited 1 time in total.
placeholder
Posts: 8218
Joined: Tue Aug 06, 2013 12:43 pm

Re: Too late for backdoor Roth conversion

Post by placeholder »

There's no such thing as backdoor roth as some special irs thing it's just two things that together is similar to making a roth contribution and specifically there is no relation to when you can make a conversion of tira amount to when it was made other than it has to be after so you could convert that contribution in 2024 or 2099 or whatever and you could go ahead and make your 2024 nondeductible and convert all at once.
Topic Author
surfer05
Posts: 40
Joined: Mon May 17, 2021 4:32 pm

Re: Too late for backdoor Roth conversion

Post by surfer05 »

Thank you Sailaway, underscore, and placeholder.
So, I'll contribute to Tira(non-deductible) for 2023 today and same day convert it to Roth to not earn anything and do the same for 2024(within 2024 calendar year). And convert that to Roth for 2024.
I can't show this conversion for 2023 taxes(that I'll be filing now) and it has to be part of 2024 taxes next year.

Did I get that right?

Thank you
Last edited by surfer05 on Thu Feb 15, 2024 10:03 am, edited 1 time in total.
BogleTaxPro
Posts: 601
Joined: Sat Apr 04, 2020 6:08 pm

Re: Too late for backdoor Roth conversion

Post by BogleTaxPro »

surfer05 wrote: Thu Feb 15, 2024 9:52 am Thank you Sailaway, underscore, and placeholder.
So, I'll contribute to Tira(non-deductible) for 2023 and 2024. And convert that to Roth IRA.
I can't show this conversion for 2023 taxes(that I'll be filing now) and it has to be part of 2024 taxes next year.

Did I get that right?

Thank you
Just to be clear...as Underscore says...the CONVERSION will be entirely 2024, but the non-deductible CONTRIBUTION that you just made for 2023 must be reported on your 2023 8606.
Topic Author
surfer05
Posts: 40
Joined: Mon May 17, 2021 4:32 pm

Re: Too late for backdoor Roth conversion

Post by surfer05 »

BogleTaxPro wrote: Thu Feb 15, 2024 10:01 am
surfer05 wrote: Thu Feb 15, 2024 9:52 am Thank you Sailaway, underscore, and placeholder.
So, I'll contribute to Tira(non-deductible) for 2023 and 2024. And convert that to Roth IRA.
I can't show this conversion for 2023 taxes(that I'll be filing now) and it has to be part of 2024 taxes next year.

Did I get that right?

Thank you
Understood. Thank you.

Just to be clear...as Underscore says...the CONVERSION will be entirely 2024, but the non-deductible CONTRIBUTION that you just made for 2023 must be reported on your 2023 8606.
Post Reply