dmertz
Level 15

Retirement tax questions

When you do a Roth conversion, you consume basis in nondeductible traditional IRA contributions which then becomes basis in Roth conversions not taxable at conversion.  If you have a zero balance in traditional IRAs at year-end, all of your basis in nondeductible traditional IRA contributions was applied to the Roth conversion and you should have no basis to carry forward to line 2 of the subsequent year's Form 8606.