Thank you for your clarification on 401k exclusion. I understand the concept of Form 8606. I have inserted different amounts in the valuation line to test results. What I don't understand is that as I increase the value of the IRA valuation, the federal tax liability amount declines. It's not a lot, but I don't understand. Is there an explanation? Again, there was no contribution in 2024. There was a Roth conversion.
