@fanfare -
Excellent. Thanks again for the quick response and clarification. 👍
So my apologies in advance for "beating-this-dead-horse", but to summarize... in my case:
- the $6,000 conversion from Traditional to Roth is allowed
- the fact that I also had the $100,000 401(k) rolled over to Traditional-IRA in this same tax year only complicated my $6,000 conversion b/c it is no longer a "tax-free" conversion to the Roth-IRA (from the Traditional)... but it, too, is allowed
- Instead, of being a tax-free IRA conversion, I will be taxed the ~$5,660
- and the rolled-over Traditional-IRA continues untaxed until a distribution is taken
I hope that's the correct understanding.
Lastly, any idea what was meant by @dmertz when he/she wrote - "Your traditional IRA will have $5,666 of basis to be applied proportionately to future traditional IRA distributions and Roth conversions."
I appreciate this tutorial and again apologize. As you can probably tell, taxes lingo is not part of my regular vocabulary. 🙄
