Looking for guidance on documenting Traditional IRA contribution and Roth IRA Conversion process

Your understanding is mostly right, but let me clarify a few things to make sure your documentation is correct. For 2024 taxes: Yes, you'll report the $6,500 Traditional IRA contribution on your 2024 return. You'll use Form 8606 to document this contribution. Since you converted it in 2025, you'll still claim this as a non-deductible contribution (assuming you're over the income limits for deduction). For 2025 taxes: You'll need to report both the conversion of your 2024 contribution AND your 2025 contribution/conversion. This means: 1. Form 8606 for the $6,500 2025 Traditional IRA contribution 2. Form 8606 to report the conversion of BOTH contributions ($13,000 total) 3. You'll also receive a 1099-R showing the $13,000 distribution from your Traditional IRA The important thing is tracking your non-deductible basis correctly so you don't get taxed twice when you convert. Your Form 8606 creates that paper trail.

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I was totally skeptical about taxr.ai at first, but after dealing with the headache of incorrectly documenting my Roth conversion last year, I decided to give it a try. Best decision ever! The system immediately identified that I had been calculating my non-deductible basis incorrectly across multiple years of Traditional IRA contributions and Roth conversions. The tool showed me exactly how to fix my Form 8606 reporting and even helped me understand when I needed to file an amended return. My situation was similar to yours with contributions and conversions happening in different tax years, and the step-by-step guidance made everything crystal clear. Definitely worth checking out if you're doing the backdoor Roth strategy.

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Don't forget about the step transaction doctrine! If you're doing Traditional IRA contributions and converting to Roth shortly after (backdoor Roth), there's some debate about whether the IRS could potentially challenge this under step transaction rules. Most tax pros say it's fine since Congress has tacitly approved the strategy, but just something to be aware of. Make sure to keep records of all your transactions with dates. Most brokerages will send you a 1099-R for the conversion, but you're responsible for tracking your non-deductible basis on Form 8606 year after year. Miss a year of filing it and it gets really complicated to reconstruct your basis.

Has anyone here actually been audited for their IRA conversions? I've been doing backdoor Roth for years but always worry I'm doing something wrong with the Form 8606.

Your tax reporting breakdown looks correct! Just to reinforce what others have said - the key is maintaining accurate Form 8606 documentation for all your non-deductible contributions. One thing to double-check: make sure your brokerage statements clearly show the dates and amounts for each transaction. For your 2025 taxes, you'll want to verify that your 1099-R reflects the full $13,000 conversion amount. Sometimes brokerages split these into separate 1099-Rs if the conversions happened on different dates. Also, since you're doing this strategy regularly, consider setting up a simple spreadsheet to track your non-deductible basis year over year. It makes the Form 8606 preparation much easier and gives you a clear audit trail. The IRS wants to see consistent reporting, so having your own records beyond what the forms show can be really helpful if questions ever come up. Good luck with your tax filing!