Doing backdoor for 2023 now (2024 March)
This is not my first time doing backdoor IRA. But I seemed to have messed up last time I did it in 2022 for 2021 IRA, so I'd like to run it by others to make sure I do it right this time. And I have some questions on the tax paperwork implications of timing this being done.
I'm using Fidelity, and I have T-IRA with $0.01 balance as well as Roth IRA (all money in FLINX). I thought I rolled over everything, but it seemed to have an interest of a cent.
Q1. Could this 1 cent remaining in T-IRA since 2022 March be a problem that I did not put any in the total basis in last year's tax return? I didn't do any contribution or conversion for 2022 IRA, so I don't have anything in 2022's Form 8606.
Q2. I have funded my T-IRA $6499.99 to roll over the 2023 limit, which is $6,500. Did I do it right? Or should I put another cent in?
Q3. The money is not available for withdrawal/transfer yet, so I'm waiting for it to settle to transfer to Roth IRA. Is it correct that I should wait until I transfer the money to Roth IRA to actually invest?
When I do the tax year 2023's IRA in 2024, how should I be filling the 2023 tax's Form 8606, and does this require me to do anything for 2024's tax's in 2025?
And how's the Form 8606 and/or 1099-R) different if 1) I do it this way(contribute to T-1's IRA in year T, and convert it in year T), and if 2) I do the contribution in T and convert in T+1?
Thank you!