Yes, if there is a loss before converting funds then it is possible to have a basis left even when all funds have been converted. Therefore, your husband has the $1 basis added to his $8,000 basis from the nondeductible contribution for 2024. Yes, if he earns $1 interest before converting the funds then his conversion of $8,001would be nontaxable.
Yes, part of your conversion will be taxable since you had pre-tax (deductible ) funds in your traditional account. Yes, if you balance is $0 at the end of 2025 then $1,000.03 of the $9,000.03 conversion will be taxable.
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