You’re preparing your tax return for last year, and you realize you never did a Backdoor Roth IRA contribution for last year. You know the IRA lets you do “normal” contributions to IRAs or Roth IRAs for the previous year up until the day tax returns are due. But what if you need to do a BACKDOOR Roth IRA for the previous year? There is a nuance here because the backdoor Roth IRA is composed of two separate operations, only one of which can be back-dated to last year!
As an extra twist, I’ll also walk through how to do a Backdoor Roth IRA contribution for both last year AND this year. For example, in early 2022, you want to make a backdoor Roth IRA contribution for both 2021 and 2022!
This video applies to United States retirement accounts. None of the information in this video is financial, investment, or tax advice. I am not a registered financial professional of any sort, and all information is used at your own risk.
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This is LITERALLY what I was hoping to find online! I exactly did this last year and I was so confused about reporting it in my taxes. THANK YOU SO SO MUCH!
Hi Will, not sure if you could guide me, I did back door conversion in Feb for 2021 -contributed to traditional IRA $6000 and immediately moved that to Roth IRA. I did not receive any 1099-R from Vanguard. My taxes are already submitted without 8606. What should I do now ? I am also planning to contribute in June for 2022. Just FYI. I would appreciate your help.
This is so helpful. Thank you so much! I couldn’t get a better explanation online!
Thank you for clarifying!
This is what I have been searching online for weeks!! Thank you so much for your help!
In October 2021 (filed extension) I moved 2020 IRA money I had inappropriately put into a Roth IRA into an empty traditional IRA before the deadline. Then I backdoored it on Dec 2021. This is 2020 IRA money, not 2021 or 2022. What do I do now with form 8606? Do I have to amend last years taxes?
Thanks for you help, Will. This is great info!
So to be 100%…
I can do a total of $12,000 converted from tIRA to Roth IRA in 2022 ($6k transferred from 2021 tIRA contribution + $6k transferred from 2022 tIRA contribution)?
Meaning for 2021 tax year I declare $6k contribution to tIRA and for 2022 tax year I declare 2022 contribution to tIRA and the 12k conversion to Roth IRA?
appreciate it
Awesome video!
Hey Will, awesome video!
Quick question: In this example you made, usually Fidelity issues a 1099-R form that mails to you around Jan 2023, with an amount of $10k, which is the sum of the contribution/conversion of 2021 and 2022. Since this 1099-R form arrives in Jan 2023, I could have missed reporting form 8606 for 2021 during 2022 tax preparation season. Imagine I realized that one year later, during the 2023 tax preparation season, with the help of the arrival of the Fidelity 1099-R form with 10k on it, how could I fix this error of missing Form 8606 for 2021 next year?
That's exactly what happened to me right now at Feb 2022: I did the backdoor for 2020 and 2021 last year but forgot to submit 8606 for 2020 in the last tax preparation season..
Thanks for the help!
i don't know how a backdoor roth ira contribution works
Will, let's say you don't have the 6000 in lump sum so you plan to contribute monthly, can you make several conversions i.e., once per month (500 per month). Then file just one form 8606 at the end of the tax year?
Will. awesome videos, just found you and subscribed, really good. One question. I filed 2020 already can I do a 2020 deposit then rollover and a 2021? Not asking tax advice just knowledge
Hi Will. Just discovered your channel through this video. Thanks! The visual was really helpful.
I wonder if you know what to do if someone filed their tax return early (let’s say in March) and then realized they wanted to do what your saying in early April (before filing deadline). So they make the “prior year” contribution and conversion, but the prior year return was already submitted.
Do they have to do an amended prior year return?
Thanks for the great video as usual Will! Could you make a video explaining the new changes to backdoor and megabackdoor Roths from the Build Back Better bill?
Good video as always man. Have you been keeping up with congress considering banning some of backdoor and super mega backdoor conversions
Hi Will. Thanks for explaining the process. Question about form 8606–is this form also needed for the mega backdoor rollover?