DanaB27
Expert Alumni

Retirement tax questions

You stated that the $1,700 were pre-tax, therefore the $1,700 do not fall under the  "... include nontaxable (after-tax) rollovers ... " category. You do not add the $1,700 to line 2 of Form 8606. The $1,700 will be taxable when you take them out of the traditional IRA. 

 

Since you have pre-tax and after-tax funds mixed in the IRA the pro-rata rule applies. TurboTax will ask for your value of all your traditional, SEP, and SIMPLE IRAs on December 31, 2023 (click continue after you enter all Form 1099-R). And then TurboTax uses this and the other information from Form 8606 to calculate the nontaxable part of the conversion on line 13 according to the pro-rata rule.

 

@Novahut 

 

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