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@yfegade wrote:
Yes, from 2012 till now I have taken distribution from my traditional IRA and converted them to Roth IRA.
I understand that SEP contribution is not going to affect my basis, but the conversions from traditional IRA to Roth IRA will change my basis and affect how much of that conversion is taxable.
By not including value of SEP IRA on line 6 of form 8606 over the years, I may have messed up my taxes a bit.
Anyway to fix that or at least correct basis going forward?
It does not change the basis, but it will affect the taxable amount.
The 1099-R distribution question for the basis specifically asks for the year end value of ALL existing Tradition, SEP and SIMPLE IRA's so the existing basis can be properly pro-rated between the current years distribution and remaining value. That amount goes on line 6 of the 8606 form.
If you under paid the tax for those years then yiu need to amend and file new 8606 forms and pay the tax. While the 3 year statute of limitations for amending applies to refunds, there is not statute of limitations for underpaid tax. The IRS can go back 7 and sometimes 10 years.
