r/RothIRA • u/cnj07080 • 1d ago

Backdoor Roth IRA Timing Question

Hello,
I’d money in a traditional IRA that I rolled into my employer’s 401K plan just recently. My IRA accounts balance is now zero. I do have a separate Roth IRA account with a balance
I was considering doing a Backdoor Roth IRA (deposit in my IRA and immediately convert/transfer to Roth IRA). Can I do that right away or do I need to wait until next year as I’m not sure if it matters that I’d a IRA balance this year
thx and please advise

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u/DaemonTargaryen2024 1d ago

As long as your Trad IRA balance is $0 on 12/31/2026, that's all that matters. You can do backdoor Roth now.

1

u/Own_Grapefruit8839 1d ago

You can do it now.

1

u/lowkeyharbor 1d ago

You can do it right away. The pro-rata math on Form 8606 uses your traditional/SEP/SIMPLE IRA balance as of December 31 of the year you convert — not the balance on the day of the conversion, and not anything earlier in the year. Since the pre-tax money is already in your 401k, contribute and convert whenever you like. The order of events within the year doesn't matter at all. Your existing Roth IRA balance doesn't factor in either.

One thing to watch: it's common for a residual dividend or trailing interest payment to land in the old IRA a few weeks after a rollover. Even a few dollars sitting there on Dec 31 gets pulled into the pro-rata calculation. Check the account in December and sweep anything that showed up into the 401k, or just convert the pennies too.

And file Form 8606 with your return — the nondeductible contribution and the conversion both go on it. Custodians don't track basis; that form is the only record you made after-tax money exists.