I am planning to backdoor $6000 into my Roth IRA for 2019, which currently has nothing in it.
I have $2500 in a traditional rollover IRA. I was going to put it into the Roth, but due to the ordering rule for distributions, I've decided against that (I want access to my backdoored contributions in less than 5 years without paying a penalty on the $2500).
So instead, I'm going to move the traditional IRA into my 401k. Do I need to do that before I do the backdoor transaction, or can I just do both before April (June) 15th?
Will my brokerage firm fill out all the necessary forms for me for the roll-in into my 401k, and will they understand that this is for 2019 and not 2020? I can't find any info on this as I understandably find a bunch of "401k to IRA rollover" links. And do I need these forms to file my taxes?
Also, I think I need to file form 8606. Investopedia said:
you must file Form 8606 for every year you contribute after-tax amounts (non-deductible IRA contribution) to your traditional IRA
And 3oakscapital said:
When you do eventually convert your IRA assets to a Roth IRA, the IRS will assume your basis in IRA assets is $0 unless you tell them otherwise. For that reason, it's important to keep track of your non-deductible contributions each year by filing Form 8606 with your tax returns. This will establish a basis with your contributions.
If you fail to file the form, the IRS will have no record of your basis, and try to tax you twice when it comes time for the conversion. It's not catastrophic if you forget to file it one year though - this form can be filed retroactively if necessary.
The instructions for the form itself indicate I have to file:
You made nondeductible contributions to a traditional IRA for 2019, including a repayment of a qualified disaster or reservist distribution.
I'm a little confused because someone on my last question said I didn't need to file it in the event that I converted all $8500 into the Roth IRA at once (which I understand is slightly different than what I'm doing now, since the $2500 has a new destination).