I have a traditional IRA that includes $8,000 of after-tax, non-deductible contributions. That means my traditional IRA has a cost basis of $8,000 which is shown on the last Form 8606 I filed which was for tax year 2020.
In 2024 I did a Roth conversion of about $95K. I want $8K of the conversion to be the after-tax, non-deductible contributions. This means $87K is a taxable Roth conversion and $8K is a tax-free conversion. When I tried to enter this 1099-R in Turbo Tax, it told me to delete the single 1099-R and create two 1099-R's--one for the taxable conversion and one for the non-taxable conversion--that together add up to the single 1099-R. I did this.
I thought this would trigger a new Form 8606 in my 2024 tax return to indicate that my IRA cost basis is now $0 but that did not happen. How do I report to Turbo Tax and the IRS that the new cost basis for my traditional IRA is now $0?
