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Does IRA distribution calculation (in 8606) prefer to take the taxable amounts first over non-taxable?
I had 0 in my IRA (12/31/23). Then I contributed $8000 nondeductible. Then I converted $8012 to roth-ira and by end of 2024 I had $20. So total interest $32, but I had already moved $12 of it out to roth.
8606 line 13 (nontaxable distribution) shows $7980 and line 14 (basis) $20.
I'd expect 8k non taxable distribution frankly and maybe 0 basis? Is this a TT or an 8606 artifact? Thanks
‎April 4, 2025
6:14 AM