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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?

Dilip Sarwate
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Pete B.
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2 Answers2

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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.

littleadv
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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.

user102008
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