dmertz
Level 15

Retirement tax questions

As indicated by the code-2 2024 Form 1099-R, it seems that in 2024 you converted only $6,298.87 in 2024.  Since you made $7,000 of contributions in 2024 for 2024, this seems to imply that your traditional IRA suffered investment losses before the conversion, resulting in $1,701 of your basis in nondeductible traditional IRA contributions being on line 14 of your 2024 Form 8606 to be carried forward to 2025, with only $6,299 of basis being applied to your 2024 conversion.

 

Since you made $2,000 of your traditional IRA contribution for 2024 by way of a recharacterized Roth IRA contribution, this implies that you made only an additional $5,000 in direct traditional IRA contributions in 2024 for 2024.

 

The $1,000 contributed in 2025 for 2024 cannot have been converted to Roth in 2024.  That conversion, assuming that one will be or already has been done in 2025, will be reportable on your 2025 tax return and will use some of the basis carried forward from 2024 to reduce the taxable amount, probably to zero.