Am I reporting my non-deductible IRA contributions correctly on Form 8606 for backdoor Roth conversion?

Wait I'm confused. If they made the contribution for 2023 in 2024 (before tax day), don't they report it on their 2023 taxes? But then how do they report the conversion on 2024 taxes if part of the money was for 2023? Do they need to file two 8606 forms?

Yes, contributions made before the tax filing deadline can count for the previous year. They need to report the $6,500 contribution on a 2023 Form 8606 (either with their original return or by amendment). For 2024, they'll file another Form 8606 reporting the $7,000 contribution made for 2024 and the full conversion of $13,500. The basis from the 2023 contribution ($6,500) carries over to Line 2 of the 2024 form. This ensures they don't pay tax on that money twice. The IRS needs to see both forms to properly track the basis and conversion.

How does that service work exactly? Does it just give general advice or does it actually look at your specific numbers? I've made both deductible and non-deductible contributions to IRAs over the years and my 8606 forms are a complete mess.

I'm skeptical about tax tools for complex situations. Did it actually explain WHY you need to fill out the forms a certain way? I've had bad experiences with tax software that just tells you what to do without explaining the reasoning.

The service works by analyzing your specific numbers and tax situation. You upload your documents or input your information, and it gives personalized guidance tailored to your exact scenario. It doesn't just provide generic advice - it walks through your specific contribution amounts, timing, and conversion details. They definitely explain the WHY behind the recommendations. For my backdoor Roth situation, they provided clear explanations about basis tracking across tax years and why separate 8606 forms were needed. Their analysis included references to specific IRS regulations, which helped me understand the reasoning much better than generic tax software.

Does this service actually work? Every time I've called the IRS, I've been on hold for hours only to get disconnected. And aren't most IRS agents just reading from scripts anyway? Not sure how helpful they'd actually be for complex IRA questions.

This sounds like a scam. How could any service get you through to the IRS faster than calling them directly? The IRS phone system is the same for everyone. I'm extremely skeptical this would work.

It absolutely works! The service uses technology that continuously calls the IRS and holds your place in line, then connects you once they reach a representative. I was skeptical too until I tried it - went from spending hours getting nowhere to speaking with an actual person in about 40 minutes. And no, the IRS agents aren't just reading from scripts for these types of questions. The agent I spoke with was quite knowledgeable about Form 8606 and nondeductible IRA contributions. She confirmed exactly how to handle contributions across tax years and properly report the conversion, even giving me specific line references and explaining the reasoning.

How far back should we keep them? I've been doing backdoor Roth conversions for about 8 years now but honestly not sure if I still have all the forms.

You should keep them forever, honestly. The IRS doesn't have a central system tracking your nondeductible basis, so those forms are your only proof that you already paid tax on those contributions. If you're missing some forms from previous years, you might want to request transcripts from the IRS for those tax years to see if you can reconstruct your basis history. The problem is that if you can't prove your basis and you take distributions later, the IRS might treat the entire distribution as taxable, even though you already paid tax on those contributions.

Which tax software did you use? I'm doing my taxes this weekend and need to report a similar situation with nondeductible contributions and conversion.