DanaB27
Expert Alumni

Retirement tax questions

Yes, you will enter $9.75 for the "Value of your Traditional IRA as of Dec 31, 2024" and leave the other fields blank.

 

The calculations are correct. You had a mix of pre-tax and after-tax funds in your traditional IRA, since you had earnings in your traditional IRA. Therefore the pro-rata rule applies. This means that with each distribution/ conversion you will have a taxable and nontaxable part. You can see the remaining basis on line 14 of Form 8606, this basis will be carried forward. Therefore, each distribution/conversion in the future will have a taxable and nontaxable part until the basis is all used.

 

Yes, next time you can convert the full amount.

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