I over-contributed to a Roth IRA a couple of years ago, so I had to recategorize the excessive contribution to a Traditional IRA. I let that money sit in the traditional IRA for a couple of years, which generated some gains. Anyway, I converted all of them to Roth IRA a few years ago and filed 8606. That conversion established a basis of $5575. Since then, I started doing backdoor Roth contributions —meaning I contributed the maximum allowed to a traditional IRA, then immediately converted it to a Roth IRA. Had no earnings between the contribution and conversion. And had $0 balance in any Traditional IRA at year-end. It appears that every year, the basis (line 2) of my 8606 remains the same - it is always $ 5,575. Is that correct? And, what does that $5575 do at the end when I start to take money out of my Roth IRA? Do I need to worry about it at all? Thank you!
