The strategy commonly called a backdoor Roth generally involves a traditional IRA contribution and a Roth conversion. Contribution eligibility, annual limits, and the treatment of the conversion must still be checked.

When pretax and after-tax IRA amounts coexist, the conversion calculation can require aggregation of relevant traditional IRA, traditional SEP IRA, and traditional SIMPLE IRA balances. Opening a new account for the after-tax contribution does not necessarily isolate those dollars for tax purposes.

Form 8606 tracks nondeductible basis and applicable distributions or conversions. Give the preparer prior Forms 8606, year-end IRA statements, and current contribution records. A missing basis history can lead to incorrect reporting, while an unexpected pretax balance can create taxable conversion income.

Your next steps

• Inventory relevant IRA balances before converting.
• Confirm contribution eligibility and basis history.
• Prepare the applicable Form 8606 calculation.

General education, not individualized tax or legal advice. Illustrations use stated assumptions and do not promise a refund or tax saving.