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Retirement tax questions
Thank you DanaB27.
I followed the directions, but the program does not seem to be addressing a couple of things. From the research I have done, the basis can be used as a stand alone #, onlywhen a person does not still have other deductible traditional IRA's. I have other deductible IRA's. I was surprised that the software does not ask this question. From what I understand I am supposed to divide the basis (which I provided) into the total of (both deductible and non-deductible) IRA's in order to get a %, that is to be used as the % of my conversion that is taxable. I think this correlates to IRS Form 8606, but the program is not addressing this, and I think that something is wrong or I am missing something.
Also, the program seems to make the assumption that the traditional IRA and the conversion to the Roth occur in the same year, which may be the typical way, but in my case it is not being done in the same year.