Hi all,
I recently made a 2020 tax year non-deductible contribution to my Traditional IRA, intending to then perform a rollover into a Roth IRA to perform the backdoor Roth (as I do annually).
However, the contribution was made just prior to the market losses due to COVID, so the $6k contribution is now sitting at about $5,300, still in the Trad IRA. I read in a few forums about an issue related to unrecoverable basis if you then rollover the (now lower) balance into the Roth, but am having trouble understanding this.
Just trying to decide if I should just perform the rollover now, or if there is some kind of tax issue related to this. Is there any kind of capital loss I can take / would lose by doing the rollover? Any help is appreciated. Thanks!
