Retirement tax questions


@Bigratollie wrote:

So just to clarify in 2021 she converted 6500 but accidentally left 2500 in there so that following year the basis should’ve been 2500 on the 2022 form 8606, thanks again


Ok, I still don't understand your specific question.

 

If she started 2023 with a non-deductible basis of 2500, added more funds, and then converted everything, then the 2023 form 8606 should have 

Line 1 $6500 (assuming max contribution)

Line 2 $2500

Line 6 $0

Line 8 (amount converted) will be some amount larger than $9000 $8000, which is the $9000 basis plus any investment growth on the $2500 leftover in the account (or it could be less than $9000 if your investments lost money)

Line 12 $8000 $9000

Line 14 (new basis) $0

Line 15c (taxable amount) = the gain that was included in line 8 due to the investment growth of the original leftover $2500 + the gain on the $2500.