dmertz
Level 15

Retirement tax questions

This is the correct result of the pro rata calculation on Form 8606.  The $1 of your basis that was not permitted to be applied to your Roth conversion remains in your traditional IRAs to be applied to future traditional IRA distributions and Roth conversions.  The $1 on line 14 of this Form 8606 will carry forward to line 2 of the next Form 8606 that you file.