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If I contribute to an IRA that is non-deductible, I can then roll that over to a ROTH and pay no additional tax, assuming that there is no gain.

I am assuming that I can do this until April 15 for the year previous. Example I can make this effective for the 2014 tax year until 4/15/2015.

Are there annotations that have to be made on form 1040 in order to do this. If so it seems like I would have to wait until I know the exact amount I can dedicate to this prior to filing.

Sorry this is my first year that I might do such.

Added in the faint hope that the OP might clarify matters a little more.
I might or I might not have other Traditional IRA accounts with the same IRA custodian. Will this change the answers? What if all my other Traditional IRA accounts are with other custodians_? Will this change the answers?

  • @Pete - Are you converting to a Roth 401(k)? Else, what he (Dilip) said.... – JoeTaxpayer Dec 4 '14 at 21:52
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    @DilipSarwate I think Pete is trying to do post-tax, traditional 401k contributions. This is different than a Roth 401k contribution and different than a pre-tax, traditional 401k contribution. – Alex B Dec 4 '14 at 23:22
  • You may have to roll over the post tax 401k into an IRA, and convert then. Check with your HR. – littleadv Dec 5 '14 at 3:32
  • @DilipSarwate Right on the in-service withdrawal question. The info about how pre-tax and post-tax withdrawals are treated by the IRS just changed in September. See: money.stackexchange.com/questions/37166/… where I gave some more details. – Alex B Dec 5 '14 at 18:13
  • Ok, so all my comments above are irrelevant because the OP has deleted all references to 401k. So, I am deleting my comments. Sheesh! – Dilip Sarwate Dec 6 '14 at 1:31
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Not an annotation, a form.

You must attach form 8606 in the year for which you made a non-deductible IRA contribution, and in the year during which you did the conversion.

If you contribute to IRA in 2015 for 2014 - you attach for 8606 to your 2014 return to account for the non-deductible contribution.

If you convert traditional IRA to Roth in 2015 - you attach form 8606 to your 2015 return to account for the conversion.

If you do this in the same day - you create two separate tax events which are accounted for in two separate tax years, and use form 8606 for each of the years to report them to the IRS.

  • TY you deciphered my version of Ebonics, I meant put into a non-deductible IRA, then move to a ROTH. I would need 8606 for that, thanks! – Pete B. Dec 5 '14 at 16:47
  • @littleadv Perhaps you might want to point out to the OP that if he has any other Traditional IRA accounts with pretax amounts in them, what will be rolled over will be a mix of pretax and post-tax money and not just the post-tax money in the specific IRA account with post-tax nondeductible contributions that is being used to fund the rollover, and income taxes are due on the pretax amount rolled over. Backdoor Roth IRAs are a great idea if one has no Traditional IRA accounts with pre-tax money in them, but don't work so well for people who have other Traditional IRA accounts. – Dilip Sarwate Dec 6 '14 at 2:14
  • @PeteBelford Dilip has a point. I discussed this at length here: littleadvisor.wordpress.com/2013/11/06/… – littleadv Dec 6 '14 at 6:16
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Rollovers and conversions count for the year when they happen. So a rollover that happens between 1/1/2015 and 4/15/2015 is a 2015 rollover.

But you said in your question that you "pay no additional tax"; then what difference does it make what year it counts as?

Contributions to IRAs can be made up to 4/15 of the following year. Rollovers and conversions are not contributions, and do not count as contributions. What year a contribution counts as matters because there are yearly contribution limits for IRAs. But there are no yearly limits for rollovers or conversions. So I fail to see why it matters, other than which year's tax form it shows up on.

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