qbteachmt
Level 15

"Backdoor" is when the Trad IRA contribution is nondeductible, creating Basis, and then immediately converted to Roth, avoiding any earnings or income.

"Conversion" of an amount already in a Trad IRA is a taxable event, unless there is Basis. If there is Basis, then the conversion is pro rata taxable.

Both of these require you to also take into consideration (aggregate) Trad, SIMPLE and SEP IRA amounts. For instance, a person making a backdoor for 2023 needed to not have any other existing account(s) with amounts, put in their contribution, and convert that exact total. Otherwise, it's not a backdoor. It's just a conversion, so now you have some math to confirm.

A 1099-R is issued for money Out.

A 5498 is issued for money In.

You want all of them.

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