Thanks. Yes, the $6,000 will not get an IRA deduction. I'm basically doing a backdoor Roth but I think what's new is that in previous years I would contribute $6,000 then do a full balance rollover. This year, their was a 401k that I rolled into a traditional IRA. I did the same $6,000 contribution and rollover but now there is a remaining balance due to the rollover 401k sitting in the traditional IRA.
I guess what I'm really struggling with here is TurboTax has me paying $3,732 in tax ($1,733 impact after I put in the $6,000 rolled over and another $1,999 impact after I put in my remaining traditional IRA balance) on $6,000 that was converted to Roth. This would infer 62% tax rate on the $6,000 that actually moved. I was under the impression that if I rolled over $6,000 today that I would owe my income tax rate on that $6,000, which the $1,733 would seem accurate. $3,732 feels like I'm getting screwed somewhere.
