I contribute the maximum to my traditional IRA each year with non-deductible income.
2017 = $5500
2018 = $5500
2019 = $6000
Total now = $17,897.40 of non-deducted income in my traditional IRA.
I usually convert the traditional IRA amount every year using a backdoor Roth IRA conversion, but not for the last 3 years. I now want to convert the 3 years of contributions in my traditional IRA to the Roth IRA this year, and want to determine how much tax (if any) I will owe.
1) How do I determine my basis in traditional IRAs (Line 2 of 8606)? The tax basis chart says it would be $5500 (Line 14 from my previous year 8606) - is that correct, or should it include the full $17,897? Does the basis accumulate?
2) Do I need to report any gains on the traditional IRA over the last 3 years? How and where do I do this?
Thanks in advance.
