During last year (2022), I wanted to do a typical backdoor Roth IRA. I made a full $6,000 post-tax contribution to my Traditional IRA, waited for the transfer to settle, and then immediately converted the funds to a Roth IRA.
I was reading around and came across an article that described a "common mistake." Specifically it stated...
Mistake #2: Forgetting to invest your Traditional IRA contribution. This is a common mistake. If you contribute to a Traditional IRA then do an immediate backdoor Roth conversion, it might be seen as a red flag by the IRS. If your contribution has been sitting in a money market fund, you can consider investing it in a diversified fund before doing the backdoor Roth conversion.
I checked my brokerage history and this is indeed exactly what I did. I funded the default money market of my Traditional IRA, converted those funds to my Roth IRA, and then invested it. Essentially, I didn't invest it before converting it to the Roth IRA.
Because this happened last tax year, I'm not sure what I can do now (2023). Is this actually a mistake and what can I do about it now?