dmertz
Level 15

Retirement tax questions

Yes, this is correct.  The $3 ($2.70 rounded up) is all basis in your traditional IRAs to be included in the calculation of the taxable amount of the next distribution you make from a traditional IRA, carried over to line 2 of the next Form 8606 that you file.

 

It would have been better to just convert the entire $6,502.70 to Roth.

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