Retirement tax questions

@KeshaH 

Thank you very much for the detailed answer! 

 

Yes, it makes a lot of sense like you said to "rollover the entire account balance for 2025." This actually is part of the confusion.

 

Following up on this "After the rollover, the $1,500 remaining balance will be made up of $500 deductible contributions and $1,000 nondeductible contributions.", where is this tracked for 2025 taxes? The actual funds (the original $1,500 pre-tax) will continue to be $1500 (+/- gains) on the bank statement (the year-end statement/Dec 2025 statement).  

 

Another follow up, say we do "rollover the entire account balance..." and the $2000 non-d contributions, wouldn't form 1099-R show a total of $3500 amount. Only $500 should be taxed in this case (because the $1000 was taxed already). Or how does that scenario works?

 

Thank you very much! 

 

@Opus 17 , thank you for your reply, and IRRA is just a type of IRA account (a rollover IRA-account)