- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
I assume you had some nondeductible contributions (basis) in the traditional IRA and took money out/ converted the funds.
If you have funds/ value left in the traditional, SEP, and SIMPLE IRAs on December 31, 2021, then each distribution will have a pro-rated amount allocated to nondeductible contribution (tax-free) and deductible contributions and earnings (taxable). Therefore, when you entered the value a higher amount became taxable because of the percentage allocated to deductible contributions and earnings.
If this doesn't answer your question then please provide more details and we will be happy to assist you.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎February 26, 2022
2:18 PM
2,571 Views