Not necessarily, you can see the calculation on Form 8606 (or the Taxable IRA Distribution Worksheet if you have a * next to line 13). If you have pre-tax funds (because of earnings) and the basis mixed and your value isn't $0 at the end of the year then the the pro-rata rule applies. This means that with each distribution/ conversion you will have a taxable and nontaxable part. TurboTax will calculate this for you. All you need to do is to make sure the basis from your previously filed Form 8606, line 14 is carried over to the next year and answer the question about the value of all traditional, SEP, and SIMPLE IRAs on December 31.
On your 2024 return you will have to carry over the $1 basis from your 2023 Form 8606 line 14. This will be entered on line 2. The reported nondeductible contributions for 2024 will be entered on line 1. TurboTax will do this all for you when you answer the questions in the interview.
Yes, it will be best to try to convert the full amount and have the account empty at the end of 2024.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
