Submitted by lmportance t3_11ed1rl in personalfinance

I did an immediate backdoor ROTH conversion for 2021 in 2021 and line 14 of Form 8606 was $0. I made a 2022 traditional IRA contribution of $6,000 in 2023 and did a backdoor ROTH conversion and for 2022 line 14 of Form 8606 is showing $6000.

Is this an error? I'm worried $6,000 will show up as a basis on line 2 of Form 8608 next year.

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Werewolfdad t1_jad8z6j wrote

> Is this an error?

No because you crossed tax years. You’ll report the conversion in your 2023 taxes.

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Default87 t1_jad9452 wrote

You want the $6000 to show up as basis for next year, as that way when you convert that $6000 (which happened in 2023, so the conversion will be on your 2023 tax return), you don’t have any taxes owed.

Since you made the contribution for 2022 in 2023, the paperwork is a tiny bit more complicated than had you contributed and converted in 2022. This is a good site that explains the whole process, this specific location talks about your current situation.

https://www.whitecoatinvestor.com/backdoor-roth-ira-tutorial/#late

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nothlit t1_jadcu64 wrote

That’s not an error.

Unlike contributions, conversions go by calendar year. You created $6000 of basis in your traditional IRA for 2022 by making a contribution designated for 2022, but you didn’t actually use up that basis in 2022 since you did the conversion in 2023, so it hangs around on line 14, to be carried over to next year’s Form 8606 line 2. You’ll report the conversion on the 2023 8606, not the 2022 8606.

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harrisc42 t1_jadsfhl wrote

You better hope the $6K shows up as basis. Or the conversion you made in tax year 2023 is going to be taxable income.

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Stock-Freedom t1_jadckg5 wrote

This is a mild fun fact about the Roth 401(k)/IRA. It’s not ROTH as if it is an acronym, but Roth because it’s named after former Senator William Roth.

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