Get your taxes done using TurboTax

Hello, I appreciate the fast turnaround time of your review and feedback.  To summarize my questions and your answers:

1. The “value of all your traditional….IRAs” per Form 8606 line 6 are supposed to be the balances as of 12/31/2023?  So, it is correct that I used the ending balances as of December 31, 2023 on the two broker’s traditional IRA statements, $201,000 and $248,000.
2. Under “EasyGuide” – the “Let’s Find Your Basis – Total Basis as of Dec 31, 2022”, “IRA Basis as of Dec 31, 2022”, all are referred to “non-deductible IRA basis”.  I did not have any after-tax 401K contributions that were converted to a traditional IRA in 2022, so it is zero (just wanted to clarify what you told me).
3. The 2023 401K conversion to a traditional IRA is a partial distribution from the 401K.  I still have dollars in the 401K and a small portion is “after-tax contributions”.  The 401K administrator used % allocation of the holdings to come up with the amount that I wanted to convert, and now I have “after-tax” dollars sitting in both my 401K and traditional IRA.
4. Under “EasyGuide” - The “Transfer From Employer Plans” screen input is confusing to me.  The instruction says:

• “check paperwork…Look for nondeductible or after-tax contributions made from 2002 through the date of rollover” – I think I understand this instruction.  My after-tax contributions made to 401K were from 2010 through 2013.  I contributed over the annual limit, and instead of cutting the contribution off at the limit, my employer’s payroll system accepted the overage and put them as after-tax contributions.  The total was about $600.
• “subtract the nontaxable portion of any withdrawals you took from the IRA after the rollover but before 2023” – I don’t understand this instruction.  Subtract from “what”?  Is it telling me to subtract the “IRA withdrawal” from the $600, which is the total after-tax contributions per the “paperwork” such as old 401K statements, to calculate the “Net Rollover Basis From Employer Retirement Plans”?  So in the period after the rollover to IRA but before 2023, if I withdrew $1,000 from the IRA, of which $2 was non-taxable dollars using some kind of % allocation (i.e., 98% pre-tax, 2% after tax, which I don’t know what to use to calculate, and I assume I have to pro-rate the amounts since Form 8606 uses pro-ration to determine the after-tax adjustments), I am supposed to subtract $2 from $600?  And then, how would I further come up with the “Net Rollover Basis”?  I am confused.
• Since I don’t understand the instructions on this screen, for the “Net Rollover Basis From Employer Retirement Plans”, I just used the $400 in Box 5 of the 1099R.  But I would like to know what the instruction means because I must have misunderstood it.

 5.  Per the paperwork that I found, for my after-tax 401K contributions (excluding any company match to my contributions and investment gains on the contributions), I should have $600 minus $400 (1099R box 5) = $200 still in my 401K as after-tax dollars.  And when I convert the remaining 401K dollars to the IRA, say in 2024, in theory I’ll have this $200 after-tax dollars going into the IRA in 2024, and the $200 would be added to the $353 on line 14 of the 2023 Form 8606, and the total of $553 would be put on line 2 as non-deductible IRA basis?

6.  For the explanation, I'll put in something like “The conversion of a 401K to IRA in 2023 included $400 after-tax 401K contributions.  The IRA distributions were adjusted to reflect the after-tax amounts.”

Please let me know of your further feedback, particularly the meaning of #4 “Transfer From Employer Plans” instructions.  Thank you again.