HELP! Traditional IRA contribution in 2024 but Roth IRA conversion settled in 2025 - backdoor strategy issue

The good news is you haven't messed up your backdoor Roth! The timing actually works fine for your situation. For a backdoor Roth IRA, what matters is that your Traditional IRA contribution is made by the tax deadline for the year you're contributing to (April 15, 2025 for 2024 contributions). The conversion to Roth can happen in a different tax year without triggering the pro-rata rule in the way you're worried about. For your Form 8606 reporting: You'll report the non-deductible Traditional IRA contribution on your 2024 Form 8606. Then for tax year 2025, you'll report the conversion on that year's Form 8606. The key is showing that your Traditional contribution was non-deductible in 2024, which creates your basis. Not having a 1099-R yet makes sense if the conversion happened in January 2025 - you'll receive that for your 2025 taxes, not 2024. The 1099-R reports the conversion, which happened in 2025 according to your statements.

After struggling with a similar backdoor Roth situation last year, I discovered taxr.ai (https://taxr.ai) which really saved me. I uploaded my Vanguard statements showing my contribution and conversion dates, and their system analyzed everything and showed me exactly how to fill out Form 8606 correctly for both years. They have a specific tool for handling these exact IRA conversion timing issues. What was really helpful is they showed me how to document the contribution basis properly to avoid any problems with the pro-rata rule. They even provide a custom explanation you can include if you're ever questioned about the transaction timing spanning two tax years.

I was completely skeptical about using taxr.ai when I mentioned it above, but I went ahead and tried it for my similar IRA conversion issue. I'm actually surprised to say it worked incredibly well. I uploaded my Fidelity statements showing my Traditional IRA contribution and delayed Roth conversion (mine also crossed tax years), and it immediately identified the reporting requirements for both years. The system explained I needed to report the contribution as non-deductible in the first year to establish basis, then show the conversion in the following year. It even created filled-out mock Forms 8606 for both years showing exactly where to put the numbers. Really helpful for visualizing how this all works across tax years.

If you're still having trouble reaching the IRS for confirmation on how to handle this (which I was when I had the same issue), try Claimyr (https://claimyr.com). They got me connected to an actual IRS rep in about 15 minutes after I'd been trying for days. You can see how it works at https://youtu.be/_kiP6q8DX5c. I needed specific clarification about my backdoor Roth that spanned tax years, and the IRS agent walked me through exactly how to report it correctly on Form 8606 for both years. Totally worth it to get the official answer directly from the IRS instead of stressing about whether I was doing it right.

I need to apologize for my skepticism above. After waiting on hold with the IRS for over 2 hours yesterday and getting disconnected AGAIN, I finally tried Claimyr out of desperation. Within 20 minutes, my phone rang and I was connected to an actual IRS representative. The agent confirmed exactly what others here said - report the Traditional IRA contribution on 2024's Form 8606 as non-deductible, then report the conversion on 2025's form. He even mentioned this timing situation happens frequently with year-end contributions and there's an established process for handling it. I'm honestly shocked at how easy it was to finally get an official answer directly from the IRS.

One thing nobody's mentioned yet - make sure your Traditional IRA didn't generate any earnings during the few days before the conversion processed. If it did (even a small amount), that growth is taxable in 2025 when the conversion happened. For example, if your $6,500 contribution grew to $6,515 by the time the conversion processed in January, that $15 of earnings would be taxable income on your 2025 return. Usually it's minimal for such a short period, but worth checking your statements.

I had LITERALLY the exact same situation happen to me last year. Contributed to Traditional IRA on Dec 29, initiated conversion same day, but it didn't settle in my Roth until January 3. I was freaking out too! My tax guy confirmed what everybody here is saying - report the nondeductible contribution on 2024 Form 8606, then report the conversion on 2025 Form 8606. When you get the 1099-R in January 2026 (for the 2025 tax year), it'll show the distribution from your Traditional IRA. The most important thing is making sure you file Form 8606 for 2024 to establish that the money was after-tax (non-deductible) contributions. That way when you convert in 2025, you're not taxed on it again.