Thank you so much! I've always done this in TurboTax so it should carry forward. This is also the first time I've ever had a balance at the end of the year greater than $0.50. I've never had deductible contributions. Always done a backdoor Roth. So next year it looks like it'll be a cost basis of $1 plus $7000 in nondeductible contributions. I assume TurboTax will carry that cost basis forward for me since it's showing on the form 8606 now for 2023.
Hopefully will wipe the balance down to $0 this year. However I'm looking at the money market fund's interest rate which is about 5%. Doing some quick math on this, you can see that this is about $0.95 in daily interest. So I'll have the same problem again next year since I can't convert on the same day. Would it make sense then to just do two conversions?? Convert the $7000 then convert the $1 or so in interest when you convert?
I guess at the end of the day, as long as TurboTax keeps track of this, and I answer the questions correctly, it doesn't really matter. Is that a fair statement?
