Personal Investments • Backdoor Roth Confusion

I transferred 12/29/23 6500$ in traditional IRA but forgot to do the conversion to Roth IRA account. I realized this in Dec 2024.

You made a $6500 contribution to a TIRA in 2023 for 2023 intending to convert to a Roth IRA, which has not happened yet. When you filed your 2023 taxes did you deduct the contribution on your taxes, or not? It sounds like not, but I'm checking.

I called Fidelity and I was told I should amend my 2023 taxes and include 8606 form which makes sense to me.

Depending on your above answer you may not need to amend your 2023 taxes. If you did not deduct your 2023 contribution you can download, fill out, and file the 2023 Form 8606 on its own.

I am confused that if I do the conversion in 2025, how will that impact the 2024 contribution which I will perform on 2025 prior to April 2025?

The 2025 conversion of the 2023 contribution will not affect the 2024 contribution and its 2025 conversion.

I am aware I will also need to pay taxes on gains, but which year I will do this?

You pay any taxes for the year you actually convert. So if you are converting in 2025 you will include Form 8606 which may include some taxes owed. I write "may" because there are details we don't know yet.

I am amending my 2023 taxes and I am filling out 8086 for 2023. My form only shows 0 and 6500 for certain lines as I was told my the agent on phone. So, will a form generate for me to pay the taxes or I need to fill the gains in 8086?

Wait on the amending. Did you deduct the 2023 $6500 TIRA contribution or not? Have you ever made a non-deductible contribution before 2023?

Which line is cost basis?

Line 2 has the previous cost basis from prior years. Line 14 has the current cost basis once you've done all the figuring. Line 14 is transferred to Line 2 on the next year's Form 8606.

Statistics: Posted by Duckie — Fri Jan 10, 2025 5:20 pm — Replies 7 — Views 338

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