I have a unique situation.
I started a traditional IRA 5 years ago and decided to convert to a Roth. I correctly re characterized the 2024 and 2023 with in the IRS window. I also sent in the form 8606 for every year.
I’m far from retirement and never took and withdraws. I NEVER took any deduction for the traditional IRA. I suspect I’m going to have some tax liability but confused on what that looks like. Will I be taxed on unrealized gains(ie the total balance at the conversion date) or only on gains that were realized over the 3 year (or 5year) span of the traditional IRA?
