LarryinDC
New Member

Tax Liability increased after entering Traditional IRA amount

This is similar to other questions but with a difference, I think.

 

In January, 2025, I did a backdoor conversion of a nondeductible contribution to a Traditional IRA into a Roth IRA.  A balance of $15 was left in the traditional IRA.  

 

In September, a previous employer 401k was rolled over into the nearly empty traditional IRA account.  Entering the balance of the Traditional IRA as of December 31, 2025 into Turbo Tax results in a tax liability of several thousand dollars.

 

The monies of the backdoor conversion never intermingled with the traditional IRA rollover.  Why does the tax liability go up so much?  How would I enter this so it does not.