I made a non-deductible contribution to my traditional IRA in November 2024, which I then converted to a Roth IRA that same month. At the time of the contribution, the total amount in my traditional IRA was $0.
In December 2024, I rolled over a 403(b) to my traditional IRA. My end-of-year value for my traditional IRA was roughly amount of my rollover, and my federal taxes increased when I entered this amount in TurboTax.
It looks like TurboTax is pro-rating the taxable portion of my conversion based on the end-of-year amount, although there were no pre-tax dollars in the account when I completed the conversion. Should I enter $0 as the end-of-year amount instead, or is this accurate by TurboTax?
Thank you for your guidance!
