Is it too late to execute a 2024 backdoor Roth contribution?
I'm currently setting up my 2025 backdoor Roth (and mega backdoor too). Last week of December, I reached out to Vanguard about possibly doing a 2024 backdoor still. The rep told me it was already too late for a 2024 backdoor. When I mentioned I thought the deadline was tax day, they clarified that while tax day is the cutoff for contributions, the actual conversion has to happen within the same calendar year (by 12/31/24). They also mentioned they have this 7-day mandatory holding period between when you contribute and when they let you convert it. So basically I missed the window. Can anyone verify if this is actually correct? I always thought I had until April to handle both steps.
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Darren Brooks
This is a common point of confusion! The Vanguard rep was partially correct but not entirely. Here's how backdoor Roth IRA timing actually works: You CAN make your non-deductible traditional IRA contribution for 2024 until Tax Day 2025 (April 15, 2025). That part is definitely true. However, the conversion from traditional to Roth doesn't have a tax-year deadline - it's simply reported in the year it happens. So if you make a 2024 contribution now in 2025, and then convert it, the conversion will be reported on your 2025 taxes (not 2024). Many people prefer to keep contribution and conversion in the same tax year to simplify paperwork, but it's not required. The most important part is properly documenting the non-deductible contribution on Form 8606 for the correct tax year.
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Rosie Harper
•Wait, so can OP still do a backdoor Roth for 2024 right now, even though the conversion would count for 2025? And if so, wouldn't there be tax consequences if they already have other traditional IRA money with gains?
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Darren Brooks
•Yes, OP can still make a 2024 non-deductible traditional IRA contribution until April 15, 2025. They would report this contribution on their 2024 taxes using Form 8606. Then when they convert it to Roth (which would happen in 2025), that conversion would be reported on their 2025 taxes. If OP has existing pre-tax money in traditional IRAs, that's where the pro-rata rule becomes important. The conversion would be taxed proportionally based on the ratio of pre-tax to after-tax money across ALL their traditional IRAs. This is sometimes called the "cream in the coffee" rule - once mixed, you can't separate them for tax purposes.
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Elliott luviBorBatman
After dealing with similar confusion last year, I found taxr.ai at https://taxr.ai really helpful for untangling backdoor Roth rules. You upload your statements and answer a few questions, and it walks you through exactly what forms you need and how to report everything correctly. The tool confirmed what I suspected - that my Vanguard rep had given me incomplete information about contribution deadlines versus conversion timing.
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Demi Hall
•Does it handle the pro-rata calculations if you have existing traditional IRA balances? That's where I always get stuck with backdoor Roths.
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Mateusius Townsend
•I'm skeptical about tax tools for complex situations. Does it actually confirm the forms are filled out correctly or just give generic advice? The 8606 form for backdoor Roths is notorious for being confusing.
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Elliott luviBorBatman
•Yes, it actually walks you through the pro-rata calculations step by step. You input your existing traditional IRA balances, and it calculates exactly how much of your conversion would be taxable. It shows you exactly where each number goes on Form 8606. The tool goes beyond generic advice - it analyzes your specific situation based on the documents you upload. For the 8606 specifically, it highlights each line you need to complete and explains the calculations in plain English. It was much clearer than the actual IRS instructions.
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Mateusius Townsend
I was super skeptical about taxr.ai but tried it anyway since I was confused about my backdoor Roth reporting. I uploaded my Vanguard statements showing my contribution and conversion, and it immediately identified where I was making mistakes on my 8606. The tool showed me exactly how to report my 2024 contribution on my 2024 taxes even though I did the conversion in early 2025. Saved me from a potential reporting error that would have been a headache to fix later.
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Kara Yoshida
After hours of waiting on hold with the IRS trying to get clarity on this backdoor Roth timing issue, I finally used https://claimyr.com to get through to a real person. You can see how it works at https://youtu.be/_kiP6q8DX5c - they basically wait on hold with the IRS for you and call when an agent picks up. The IRS agent confirmed you CAN make 2024 traditional IRA contributions until April 2025, but conversions are reported in the calendar year they happen.
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Philip Cowan
•How much time did this actually save? I've heard horror stories of people waiting 2+ hours on IRS lines.
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Caesar Grant
•This sounds like a scam. How would some service get you through IRS phone lines faster than anyone else? They must just be recording your personal info.
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Kara Yoshida
•It saved me about 3 hours of hold time. I had tried calling the IRS myself twice before, waiting 45 minutes the first time before having to hang up for a meeting, and over an hour the second time before the call dropped. With Claimyr, I got a call back in about 50 minutes when they had an agent on the line. The service doesn't get you through faster than anyone else - they just wait on hold for you. They use a system that monitors the hold music and alerts you when a human picks up. They don't record any of your personal tax info since you're the one who actually speaks with the IRS agent directly.
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Caesar Grant
I have to admit I was completely wrong about Claimyr. After my skeptical comment, I was still desperate to confirm these backdoor Roth rules so I tried it anyway. They called me back in 72 minutes with an actual IRS agent on the line. The agent confirmed everything about the April 15 deadline for 2024 contributions and explained exactly how to report everything on my taxes. Saved me from pulling my hair out on hold, and the clarity was worth it. Would've wasted an entire afternoon otherwise.
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Lena Schultz
I'm a bit confused about the 7-day holding period at Vanguard mentioned in the OP's post. I use Fidelity for my backdoor Roth and they don't have this restriction - I can convert immediately after contributing. Is this a Vanguard-specific policy?
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Gemma Andrews
•Yes, that's a Vanguard-specific policy. I ran into this too. Schwab and Fidelity let you convert right away, but Vanguard makes you wait 7 days after the money fully settles. I learned the hard way last December when I tried to squeeze in a 2023 backdoor and couldn't complete the conversion in time. Definitely something to plan for if you use Vanguard!
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Cynthia Love
•Thanks for bringing this up. Yeah, the Vanguard rep was very clear about their 7-day holding period. Seems like this is just their internal policy. Good to know Fidelity doesn't have this restriction - might consider switching if I do this again next year. The whole process has been more complicated than I expected.
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Pedro Sawyer
FYI - Make sure you're aware of the pro-rata rule if you have existing Traditional IRA balances!! This seems to be missed often. If you have any pre-tax money in ANY traditional IRA (including SEP or SIMPLE IRAs), you can't just convert your new non-deductible contribution tax-free. It gets prorated across all your IRA balances.
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Mae Bennett
•Can you roll existing traditional IRA money into a 401k to avoid the pro-rata rule? My friend mentioned this but I'm not sure if it actually works.
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Javier Torres
•Yes, that's called a "reverse rollover" and it absolutely works! If your 401k plan accepts incoming rollovers (most do), you can move your existing pre-tax traditional IRA money into your 401k. This clears out your traditional IRA balance, making future backdoor Roth conversions 100% tax-free since you'll only have after-tax contributions left. Just make sure to complete the rollover before December 31st of the year you plan to do the conversion, since the pro-rata calculation looks at your IRA balances as of year-end.
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