Last year I completed my first back door roth IRA conversion. To avoid the pro rata rule, I transferred all of the money out of what I thought was my only traditional IRA into my traditional 401k. Unfortunately, I just learned that a former employer rolled over my 401k balance into an Inspira traditional IRA in 2024, meaning that my aggregate traditional IRA balance was not $0 like I thought. Thankfully it's a nominal amount (~$287 in 2024 and then dropped to ~$233 in 2025 after fees and market dip), but I am still concerned about how that will impact my Form 8606 for 2025 and whether I need to amend my 2024 Form 8606. I transferred the entire Inspira balance into my roth IRA, and I am assuming I need to pay taxes on it.
My questions are:
- Do I need to refile my 2024 form 8606?
- If I do need to refile my form 2024, do my corrected calculations look correct?
- What should be my basis for 2025?
- Is it worth hiring a preparer from H&R block or turbotax to help me fix this?
I really thought I'd buttoned everything up nicely last year so I'm feeling defeated and would appreciate any insights, tips, and advice.
| Contribution, conversion, and balance info | ||
|---|---|---|
| 2024 | ||
| Schwab backdoor contribution | $7000 (12/2024) | |
| Schwab backdoor conversion completed? | 1/6/2025 | |
| Schwab trad IRA balance on 12/31 | $0 | |
| Inpira trad IRA balance on 12/31 | $287 | |
| Form 8606 | ||
| 2024 (actual) | 2024 (corrected) | |
| 1 | $7,000 | $7,000 |
| 2 | $0 | $287 |
| 3 | $7,000 | $7,287 |
| 4 | $0 | $0 |
| 5 | $7,000 | $7,287 |
| 6 | $7,000 | $7,287 |
| 7 | $0 | $0 |
| 8 | $7 | $7 |
| 9 | $7,007 | $7,294 |
| 10 | x0.999 | 0.999 |
| 11 | $7 | $7 |
| 12 | $0 | $0 |
| 13 | $7 | $7 |
| 14 | $6,993 | $7,280 |
| 15A | $0 | $0 |
| 15b | $0 | $0 |
| 15C | $0 | $0 |
| 16 | $7 | $7 |
| 17 | $7 | $7 |
| 18 | $0 | $0 |
[Form 8606 Question] Didn't realize I had a traditional IRA balance for 2024 backdoor – do I need to file an amendment? How does it chance my 2025 Form 8606
byu/railgun_t intax
Posted by railgun_t
1 Comment
Your calculations don’t look correct. Line 2 should remain zero: you got a deduction for your 401(k) contributions, so the rollover to an IRA does not give you basis in your IRA.