dmertz
Level 15
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Retirement tax questions

Your conversion is required to be a proportionate mix of nontaxable and taxable amounts, so the calculation performed on your Form 8606 is correct.  The nontaxable portion of your conversion is $8,012 * $8,000 / $8,032 = $7,980.  That leaves $32 of the $8,012 conversion taxable and $20 of basis remaining in your traditional IRAs.  Had you converted the entire $8,032 to Roth, that would have resulted in $8,000 being nontaxable and $32 being taxable.

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