Hi everyone,
My question is more of a high level ask: is this a doable thing or would it expose me to high risk even though what I intend to do is totally legit and procedurally doable; can TT handle this kind of thing with ease?
And now here's "the thing": I have a traditional IRA with mixed pre-tax and after-tax money. I want to slowly convert it to Roth IRA and by slowly I mean annually convert small amount of money as to control my tax bill. I know how to figure out the pro-rate rule (last day of year balance versus after-tax money) but will I face any other challenges with TT? Also I know that the brokerage WILL incorrectly report the conversion since they have no idea about the ratio of pre/after tax balances. Will this put me into a higher risk territory where my TT filing diverges from the brokerage report to IRS?
In summary, is this hassle worth it and am I stuck with this traditional IRA just because of my past stupidity to mix before/after tax money in the same IRA account? Thank you
