I have traditional IRA then do backdoor conversion to Roth, also have SEP IRA for side job. For "value of traditional IRA" why am I penalized for total in my SEP IRA?

[dmertz]

You aren't being penalized, you are simply seeing a consequence of the law that requires that your basis in nondeductible traditional IRA contributions be applied to your distributions, including Roth conversions, in proportion to the combined balance of your traditional IRAs, including SEP and SIMPLE IRAs.  For this purpose (and most tax purposes), all of your traditional IRAs are treated as a single account, Whatever portion of your basis is not applied to a particular distribution remains in your traditional IRAs to be applied proportionately to future distributions.  The remainder of your basis will be distributed in the year that your traditional IRA balance at year-end is zero.