Back door Roth IRA
Taxpayer asks if he can now establish a 2022 Roth after 1/1/23, but prior to 4/15/23
utilizing the back door methodology.
Taxpayer asks if he can now establish a 2022 Roth after 1/1/23, but prior to 4/15/23
utilizing the back door methodology.
Permalink Submitted by Alan - IRA critic on Thu, 2023-02-02 17:28
Yes, a TIRA contribution can be made for 2022, then converted in 2023. The 2022 tax return would show a non deductible TIRA contribution on Form 8606. The conversion would be reported on the 2023 return.
Permalink Submitted by Michael Jaffe on Thu, 2023-02-02 18:45
both non deductible IRA and Roth IRA cant be shown for 2022?
Permalink Submitted by Michael Jaffe on Thu, 2023-02-02 18:56
both transactiona are taking place in 2023 for tax year 2022
Permalink Submitted by David Mertz on Thu, 2023-02-02 21:06
Roth conversions are done *in* a particular year, not *for* a particular year. A Roth conversion performed in 2023 is reportable on your 2023 tax return and the basis in nondeductible traditional IRA contributions carried forward from line 14 of your 2022 Form 8606 to line 2 of your 2023 Form 8606 is applied to reduce the taxable amount of the 2023 Roth conversion.