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Retirement tax questions
To clarify, you show a taxable amount on line 4b of your Form 1040?
If yes, did you have any earnings before the conversion? These would be taxable.
Did you have any other pre-tax funds in you Traditional/SEP/SIMPLE IRA accounts? Or enter a value more than $0 for the value on December 31, 2024? If yes, then 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 can be carried forward.
Please review How do I enter a backdoor Roth IRA conversion?
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‎April 11, 2025
10:28 AM