Yes, your prior-year basis will be $0.
Please be aware, that you will have to enter the total value of all traditional, SEP, and SIMPLE IRAs on December 31, 2021 into TurboTax (in your case value of Vanguard plus value of TDAmeritrade). Therefore, each distribution/conversion will have a taxable and nontaxable part.
For a backdoor Roth contribution to work successfully:
- Do not have any existing IRAs that have pre-tax funds. If you do have pre-tax funds or earnings in the IRA, then each distribution/ conversion will be partly taxable.
- You must report the nondeductible traditional IRA contributions on Form 8606.
- You convert the funds shortly after you made the nondeductible contributions to avoid having taxable earnings.
- Your traditional IRA has a value of $0 at the end of the year.
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