Contributed to Trad Ira (december 2015); convertedto Roth Ira (January 2016)

[BIRJU]

Hey,

 

So i created the trad ira hte last week of december and then converted to roth the first week of january. Do my 2015 taxes just reflect the traditional IRA. I wanted this to be a 2015 calendar year ROTH.

[jfoxcpacfp]

You report the TIRA contribution in 2015 and the conversion in 2016. Be sure to file form 8606 for the TIRA to make sure the IRA has a record of your basis. It really makes no difference whether the Roth conversion is 2015 or 2016 as you're not limited to the amount you convert in a single year, but how much you contribute to an IRA. If you're married, don't forget that you can also contribute to a spousal TIRA for 2015 (until 4/18/16) and convert to a Roth.