Here is my IRA contribution summary for the past few years.
2021: 6000 (Roth IRA)
2022: 6000 (Roth IRA)
2023: 6500 (Traditional IRA)
2024: 7000 (Traditional IRA) and Also did a Roth Conversion for 14,000 which includes contributions to IRA(13,500) + capital gains(500).
When I checked the IRA Information Worksheet after filing my taxes for 2024, I could see Basis for Roth IRA contributions is incorrect but the Basis for Roth IRA conversions is reflected correctly.
I see Basis for Roth IRA contributions as 6,000 instead of 12,000. This is wrong and it needs to be corrected. I also see Basis for Roth IRA conversions as 14,000 which is correct.
Based off the above I see that the basis for Roth for contributions is incorrect and it should be 12,000. Can you please suggest what should I do next.
1) Can I update the Roth Basis in turbotax in 2025 to reflect 12,000 instead of 6,000 to reflect the correct Roth contribution basis. is this allowed.
Is this the right way to do it? I should go to Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions. Proceed to where TurboTax asks if you want TurboTax to track you Roth IRA basis and answer Yes.? Is this correct
2) If it asks me to update the Basis next year when I file my taxes should I update as 12000 or should I add 12000 (Contribution Basis) + 14,000 (conversion Basis) and then put the total as the basis for Roth.
Can you please guide me on the above questions
