@wilkieca wrote:
Thank you for your answer.
At the time the conversion took place, it was the complete account. The 401k->Trad conversion took place after the conversion. So I suppose that was the mistake.
I imagine there is nothing to do to repair the damage.
Regards
Unfortunately that is the result of not having a zero IRA at years end. 2020 is over so nothing can be done now. The taxable amount on future IRA distributions will be reduced on a pro-rated amount for as long as the IRA exists but if the after- tax "basis" is small compared to the IRA value then that tax reduction will also be small.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
