Taxes for backdoor Roth IRA without 1099-R form - how to file correctly?
So I just did my first backdoor Roth IRA and now I'm totally confused about the tax filing. In December 2023, I contributed $6,500 (after-tax money) to my traditional IRA with Vanguard with the plan to convert it to my Roth IRA as my 2023 contribution. I also plan to do another backdoor Roth in a few months - putting $7,000 (post-tax) into traditional and then converting to Roth for my 2024 contribution. Here's my problem... I thought I needed both Form 8606 (which I'll fill out myself) and a 1099-R form from Vanguard for my 2023 taxes. But when I called Vanguard, they told me I won't get the 1099-R until next year since they follow calendar year reporting. So how the heck do I file my 2023 taxes properly? Do I still submit the 8606 form by itself? Or do I not report anything about the backdoor Roth until next year when I have the 1099-R? I don't want to mess this up and get hit with penalties.
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Zainab Ali
You still need to file Form 8606 for 2023 to report your non-deductible traditional IRA contribution. This is important because it establishes your basis (the amount you've already paid tax on). The 1099-R reports the conversion from traditional to Roth, which happened in 2024. That conversion will be reported on your 2024 tax return (filed in 2025). Vanguard is correct that you won't get a 1099-R for your 2023 return since the conversion happened in 2024. So for your 2023 taxes (filing now in 2024): File Form 8606 to report your non-deductible contribution to the traditional IRA. For your 2024 taxes (filing in 2025): You'll report both the new $7,000 non-deductible contribution AND the conversion of both amounts to Roth using the 1099-R and Form 8606.
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Connor Murphy
•Wait, I'm confused. If I contributed to my traditional IRA in January 2024 but designated it as a 2023 contribution (which you can do until the tax filing deadline), do I still report it on 2023 taxes? Or does it go on 2024 taxes since the actual contribution happened in 2024?
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Zainab Ali
•You report IRA contributions on the tax return for the year they're designated for, regardless of when you actually made the contribution. If you contributed in January 2024 but designated it as a 2023 contribution (which you can do until April 15, 2024), you report it on your 2023 tax return using Form 8606. The conversion date is what determines when you report the Roth conversion - that's what will be on the 1099-R for 2024.
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Yara Nassar
After going through this same headache last year, I finally found a solution with taxr.ai (https://taxr.ai) which made this process so much easier. I uploaded my Vanguard statements showing the traditional IRA contribution and the Roth conversion, and their system automatically sorted out what goes where. They explained that your 2023 non-deductible contribution gets reported on your 2023 return with Form 8606, while the conversion that happened in 2024 will be reported on your 2024 return. They even helped prepare my 8606 with the correct basis tracking, which is super important for backdoor Roths.
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StarGazer101
•Did it handle the pro-rata rule correctly? I have some old traditional IRA money that makes my backdoor Roth calculations really complicated.
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Keisha Jackson
•How good are they with tracking multiple years of backdoor Roths? I've done this for 3 years now and I'm worried my basis calculations might be wrong.
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Yara Nassar
•Their system handled the pro-rata rule perfectly. You just need to enter all your IRA balances at the end of the year, and it calculates everything correctly. They have a specific module for Form 8606 that walks you through all the steps. For multiple years of backdoor Roths, that's actually where they really shine. They can import your previous tax returns to ensure your basis calculations stay consistent year after year. I had done backdoor Roths for two years before using them, and they found an error in my previous calculations that could have caused problems later.
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Keisha Jackson
Just wanted to update that I tried taxr.ai after seeing the recommendation here. It was super helpful! I uploaded my statements from the last 3 years, and they identified that I'd been calculating my basis wrong the whole time. Turns out I was double-counting some contributions. Their system fixed everything and generated the correct 8606 forms. The explanation they provided about which tax year to report what was worth it alone. Now I finally understand that my 2023 contribution goes on my 2023 return (Form 8606), but the conversion that happened in January 2024 will go on my 2024 return. Saved me from a potential audit headache!
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Paolo Romano
I was in exactly the same boat last year and spent HOURS on hold with the IRS trying to get clarification. It was a complete nightmare. Finally found Claimyr (https://claimyr.com) that got me through to an actual IRS agent in about 20 minutes. You can see how it works here: https://youtu.be/_kiP6q8DX5c. The agent confirmed what others here are saying - Form 8606 for your non-deductible traditional IRA contribution goes on your 2023 return, and the conversion part gets reported next year with your 1099-R. The agent also pointed out that many tax software programs don't handle backdoor Roths well, so double-check that everything is entered correctly.
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Amina Diop
•Does this actually work? I've tried calling the IRS like 5 times about my backdoor Roth question and always get disconnected after waiting for an hour or more.
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Oliver Schmidt
•This sounds like a scam. Why would I pay someone to call the IRS for me? And how do they actually get through when nobody else can?
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Paolo Romano
•Yes, it absolutely works. They use an automated system that navigates the IRS phone tree and waits on hold for you, then calls you when an agent is about to pick up. You're connected directly to the IRS agent - Claimyr just handles the waiting part. They're able to get through because their system is constantly dialing and navigating the phone tree during peak periods when you're most likely to get connected. It's basically doing the tedious part for you. I was skeptical too, but after waiting on hold for 2+ hours multiple times and getting disconnected, the 20 minute wait with them was worth it to finally get my backdoor Roth question answered correctly.
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Oliver Schmidt
I need to eat my words about Claimyr being a scam. After another failed attempt to reach the IRS yesterday (3 hours on hold, then disconnected), I tried it out of desperation. It actually worked! I got a call back in about 30 minutes, and then was connected to an IRS agent who answered all my backdoor Roth questions. The agent confirmed I need to file Form 8606 for my 2023 non-deductible contribution on my 2023 return, even though I don't yet have a 1099-R for the conversion. She explained the 1099-R will come next year for my 2024 taxes because that's when the conversion actually happened. Saved me from messing up my taxes and potentially triggering an audit. Definitely worth it just for the peace of mind.
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Natasha Volkov
Something nobody mentioned yet - make sure you don't have any EARNINGS in the traditional IRA before you convert to Roth! If your money sits in the traditional IRA and earns interest or dividends before conversion, those earnings will be taxable when you convert to Roth. Best practice is to convert immediately after contributing to minimize any earnings.
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Miguel Herrera
•How quickly should I do the conversion after contributing? Mine sat for about 2 weeks and earned like $12 in interest. Is that going to cause issues?
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Natasha Volkov
•A couple weeks is totally fine, and $12 in interest isn't going to cause major issues. You'll just need to pay taxes on that $12 when you do your 2024 taxes (since that's when the conversion happened). The real problems happen when people contribute to a traditional IRA and then wait months or even a year before converting, allowing significant earnings to accumulate. Some people have their traditional IRA in investments that could grow substantially before conversion, creating a larger tax bill.
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Javier Torres
Has anyone used TurboTax for backdoor Roth reporting? I'm trying to figure out if it handles Form 8606 correctly or if I should use a different software.
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Emma Wilson
•I've used TurboTax for backdoor Roth for the past 3 years. It works but is a bit confusing. When it asks if you want to deduct your traditional IRA contribution, make sure to say NO. Then it will guide you through the Form 8606 for non-deductible contributions. The next year, it'll help you report the conversion with the 1099-R.
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