"Even thought these funds don't qualify for deductions, contributions to Traditional IRA are tax-deferred (pre pre-tax $$) basis."
False. A nondeductible traditional IRA contribution becomes after-tax basis in your traditional IRAs. Your 2020 tax return should have included Form 8606 Part I reporting on line 1 a nondeductible traditional IRA contribution.
1. There is nothing to refund. If your 2020 tax return already included Form 8606 with the contribution on line 1 (flowing through to line 14), there is nothing to amend with regard to 2020. If your 2020 tax return did not include this From 8606, you must amend your 2020 tax return to add it.
2. You can convert some or all of your traditional IRAs to Roth whenever you want. Any Roth conversion you perform in 2023 will be reportable on your 2023 tax return. Assuming that you do such a conversion in 2023, your 2023 tax return will include Form 8606 Parts 1 and II with the amount on line 14 of your 2020 Form 8606 carrying forward to line 2 of your 2023 From 8606 to reduce the taxable amount of the Roth conversion. The amount of the basis on line 2 that will be applied to reduce the taxable amount of the Roth conversion will depend on whether or not you have any other funds in traditional IRAs. If you convert all of your traditional IRAs in 2023, all of your basis will be applied and none will continue to be carried forward.
