Backdoor Roth Conversion Tax Question - When to File Form 8606 for Different Contribution Years?

The non-deductible Traditional IRA contribution is reported on Form 8606 for the year you made the contribution, regardless of when you did the conversion. So in your case, you'd report the $6,500 non-deductible contribution on your 2024 Form 8606 (with the taxes you're filing now). The actual conversion from Traditional to Roth is reported on your taxes for the year the conversion happened. Since you converted in January 2025, you'll report that on your 2025 tax return (which you'll file in 2026). Make sure you keep good records of both transactions, as you'll need to reference the non-deductible basis when reporting the conversion next year.

After struggling with the exact same Backdoor Roth conversion issues last year, I found this amazing tool at https://taxr.ai that completely saved me. It analyzed all my contribution and conversion documents and walked me through exactly how to fill out Form 8606 correctly for both the contribution and conversion years. The most helpful part was that it explained how my non-deductible basis carried forward and showed me where each number needed to go on the form. It also flagged potential issues with my timing that might have triggered IRS questions. I was so confused about when to report what and on which year's tax return before using it.

I want to follow up about my experience with taxr.ai after mentioning my concerns about the step transaction doctrine. I decided to try it out and I'm honestly shocked at how helpful it was. The tool confirmed what others had said - that immediate conversion isn't really an IRS concern anymore - but it also provided actual documentation I could keep for my records explaining why. The best part was how it guided me through the exact reporting sequence for Form 8606. I had no idea I needed to report the non-deductible contribution for 2024 but wait until next year's taxes to report the conversion. It even created a personalized checklist with deadlines so I wouldn't miss anything. Definitely made the Backdoor Roth process way less stressful!

If you're struggling to get clear answers about your Backdoor Roth Conversion and Form 8606 questions, you might want to try calling the IRS directly. I know that sounds painful (it used to be for me too), but I discovered https://claimyr.com which completely changed my experience. I was confused about reporting my conversions since I had done multiple contributions across different years. I tried calling the IRS myself but kept getting disconnected after waiting over an hour. With Claimyr, they actually held my place in line and called me when an IRS agent was available. You can see how it works here: https://youtu.be/_kiP6q8DX5c The IRS rep gave me specific guidance on my exact situation with the Backdoor Roth reporting and Form 8606 that I couldn't find anywhere online.

I need to apologize and follow up on my skeptical comment about Claimyr. After struggling for another week trying to get clarity on my Backdoor Roth reporting, I broke down and tried the service. I'm completely shocked to say it actually worked exactly as described. I got connected to an IRS tax specialist in about 45 minutes (without me having to sit on hold!) who answered all my Form 8606 questions. They confirmed I needed to report my non-deductible contribution for the year I made it, regardless of when I did the conversion. They also explained how to handle my basis tracking across multiple years of backdoor conversions. Seriously saved me hours of frustration and uncertainty. Sometimes it's worth admitting when you're wrong!

Another important thing to remember about the Backdoor Roth and Form 8606: if you have ANY other traditional IRA funds (including SIMPLE or SEP IRAs), the pro-rata rule applies and complicates things. You can't just convert the non-deductible contribution tax-free if you have other pre-tax IRA money sitting around. Example: If you have $50,000 in a traditional IRA already and add $6,500 non-deductible, then convert $6,500 to Roth, only about 11.5% of your conversion would be tax-free. The rest would be taxable because of the pro-rata rule.

Quick tip that helped me with Backdoor Roth reporting: make sure you're using good tax software that specifically supports Form 8606 and understands backdoor Roth conversions. I tried using a free filing service last year and it completely messed up my 8606 form - didn't properly track my basis and almost caused me to pay taxes twice on the same money!

Great question about the Backdoor Roth timing! I went through this exact same confusion last year. Just to reinforce what others have said - you're absolutely correct that the Form 8606 for your non-deductible contribution goes on your 2024 tax return (the year you made the contribution), while the conversion gets reported on your 2025 return. One thing I learned the hard way: keep meticulous records of everything. I created a simple spreadsheet tracking contribution dates, amounts, conversion dates, and which tax year each gets reported on. This became invaluable when I had to reference my basis for subsequent conversions. Regarding the step transaction concern - I was worried about the same thing initially, but my CPA explained that the IRS has essentially accepted the Backdoor Roth through years of practice. There's no official waiting period required, and many people convert immediately without issues. The key is just making sure you're following the proper reporting procedures on the correct tax returns. Also, double-check that you don't have any other traditional IRA funds that would trigger the pro-rata rule - that's often the biggest gotcha that trips people up with Backdoor Roth conversions.