Background: To date, I've made the following Traditional IRA contributions:
- No Traditional IRA contributions before 2020.
- 2020: $6,000 (fully deductible)
- 2021: $6,000 (non-deductible)
- 2022: $6,000 (non-deductible)
In 2022, I completed a Backdoor Roth IRA of my total Traditional IRA balances, which amounted to roughly $10,000. As you've probably noticed, there was a significant loss in my total Traditional IRA balances at the time I made the Backdoor Roth IRA, which brought down the 3-year cumulative contributions of $18,000 to $10,000 (i.e., loss of $8,000).
Question: Given my total loss of $8,000 was higher than the $6,000 (fully deductible) Traditional IRA contribution made in 2020, I did not pay any taxes on my 2022 Backdoor Roth IRA. Could you please confirm if this makes sense to you, or if there should have been some sort of pro-rata rule calculation made that resulted in a tax liability? Ultimately, I'm trying to understand whether or not I made a mistake and if I need to go back and amend my 2022 return.
Thanks in advance!
