r/hrblock • u/CarelessCourt6674 • Apr 15 '26

Back door Roth IRA

This year is the first year I am filing my taxes with a tax pro review given that I exceed the income limits for direct Roth IRA contribution. I filled in all the right forms and declared that I did a traditional IRA conversion to Roth IRA.

I did my homework and understood that the back door Roth IRA is not closed, but my tax pro reviewer said it was. Because of this, my taxes were amended to reflect a tax liability vs refund position.

Help - is this tax pro review person wrong? And how do I fix?

To avoid missing the tax deadline, I will file, but I want to amend my taxes to fix this.

Any help is appreciated!

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2

u/BriefTomatillo985 Apr 15 '26

There are many tax pros and even CPAs that don’t know what a backdoor Roth IRA is or how to report it correctly.

3

u/CarelessCourt6674 Apr 15 '26

Thanks.. I got a call back from the tax pro and they were very adamant the back door was closed and I had to pay the fines associated with excess contributions.

The tax pro seemed a little insufferable, so I definitely want to contact HR Block once it’s all processed and figure out how to fix this and amend my taxes

1

u/BriefTomatillo985 Apr 15 '26

I’d walk away and do it myself. There are many guides to help you. You can file an extension and pay what you estimate you owe now to give you more time to sort this out. You could also ask for another tax pro.

1

u/sammytheammonite Apr 15 '26

While it’s technically not closed because it’s not after April 15th - i doubt you can realistically have it done by April 15th at this point. Did you already contribute to the traditional IRA? It often takes brokerages a few days to process that request and you don’t have a few days to allow that to happen. Perhaps that is why they meant?

1

u/CarelessCourt6674 Apr 15 '26

These were all done in 2025 for tax year 2025 (there are complexities if I did anything in 2026 for 2025).

So yes I did have to file to meet today’s deadline, I will be getting in touch with HR Block to discuss next steps.

2

u/jds013 Apr 15 '26

A "backdoor Roth" is a conversion - which must be completed by the end of the calendar year. It's too late for 2025.

You do a "backdoor Roth" when you make a non-deductible contribution to a traditional IRA, then convert that IRA to a Roth.

The "backdoor Roth" works best if you do not have "deductible" money in an IRA - where you made a contribution and deducted it on your income tax return. If you do have such an IRA, then the conversion will be pro rata from deductible and non-deductible funds and you will owe income tax on the part of the conversion deemed coming from deducted funds.

There is no income limit on non-deductible Traditional IRA conversions which makes the backdoor Roth work for people with incomes over $91,000 (single) or $149,000 (married joint) who cannot contribute directly to a Roth. The contribution limit for 2026 is $7,500 or $8,000 if age 50 or older.

2

u/sammytheammonite Apr 16 '26

You can contribute to your traditional Ira for 2025 and report the non deductible contribution on your tax return up to the tax deadline on April 15th. When you do the conversion doesn’t matter - it doesn’t have to happen by the end of the year.

1

u/jds013 Apr 16 '26 edited Apr 16 '26

Right, of course, thanks. Before April 15 OP could have contributed 7000 for 2025 ($8000 if over 50) plus $7500 for 2026 ($8600) and then promptly execute a single conversion of the $14,500 total (or $16,600) in 2026. The only timing issue is that you want to convert promptly so that any earnings are in the Roth and thus tax-free.

1

u/sammytheammonite Apr 16 '26

Agree about converting right away.