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April 9, 2025
Question

Can I count my 2024 traditional IRA contribution ( made in Jan 2025) as a basis for the 2024 roth coversion ( made in April 2024) to offset the 1099R income ?

  • April 9, 2025
  • 1 reply
  • 0 views
For backdoor roth here are the details ( numbers are appox): 1. 2022 Dec : Fund 6K to Traditional IRA (2022 contribution) 2. 2023 Jan : Convert 6K to Roth (2023 Distribution) 3. April 2024: Fund 6.5K to traditional IRA (2023 contribution) 4. April 2024: Convert 6.5K to Roth (2024 distribution) 5. Jan 2025 : Fund 7K to traditional IRA ( 2024 contribution) 6. Jan 2025 : Fund 7K to traditional IRA ( 2025 contribution) 7. Jan 2025 : Convert 14K to Roth ( 2025 Distribution) For 2023 Tax return, I could use the 2022 contribution (made in 2022) as a basis to offset the 2023 distribution. For 2024 tax return can I use the 2023 contribution ( made in 2024) as a basis? Turbo tax is showing the basis to be nearly 0 based on the amount existing on Dec 31, 2023 since this contribution was made in 2024 ?

    1 reply

    April 9, 2025

    Yes, if the contribution made in 2024 for tax tax year is nondeductible, you can add it the basis of your Traditional IRA as of 12/31/2023.

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