Why is my tax amount increasing seemingly based on how much I have remaining in my one and only Traditional IRA?

Forum|Forum|4 months ago
January 16, 2026
2 replies
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I started taking my RMD in 2023, so for 2023 and 2024 I have gone through the IRA information regarding RMD, Basis, did all the YES NO questions and my taxes are calculated. When I get to the page that asks for the IRA balance, and I enter the actual number, my taxes increase. So, I experimented with other balance numbers, each time the tax about changes. I know the balance 12/31/YR is needed to figure out next years RMD, but I cannot find information that indicates it is used for this year's taxes.

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Best answer by baldietax

Expert Reviewed

have you checked form 8606, if you have basis in the IRA then the 12/31 MV is used in the pro rata calc for how much of a distribution/conversion is taxable

baldietaxAnswer

Level 12

Expert Reviewed

have you checked form 8606, if you have basis in the IRA then the 12/31 MV is used in the pro rata calc for how much of a distribution/conversion is taxable

Mike9241

Level 15

That's because some of your basis in the IRA is allocated to the taxable portion of the distribution. The higher the value of all your taxable IRAs at 12/31/2025, the smaller the basis allocation and thus the taxable portion is higher

Mike