I have same question. before 2016,I made nondeductible traditional IRA 4 years total $16000. I kept Form 8606. Last year I made a conversion to roth IRA. I follow the step i was seen in AnswerXchange "A Backdoor ROTH conversion consists of two parts" send part.--The non-taxable distribution. But I still need pay tax! How can I think that? because after I finished get,I need oay tax, for example, $6600. But if I delete my 1099R form which include $16000, I need pay 2872. So I think I still pay tax for my non-taxable distribution.
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The non-deductible contributions cannot
be converted in isolation from any other existing traditional and rollover
IRA(s). It's best explained by example. Let's say you have a $10,000 balance in
all your existing traditional IRAs and that balance consist of $3,000 in
deductible contributions, $2,000 in previous non-deductible contributions and
$5,000 in earnings (interest, dividends & capital gains). Your basis, in
all your IRAs, is $2,000. This year you convert $5000 to a Roth. Only 20% of the $5000
conversion ($1000) will be tax free . TurboTax will divide that $2,000 basis by
the $10,000 balance to arrive at the 20%
tax free ratio. $4,000 of the conversion will be taxable. This is the way the IRS requires it to be done. The
calculations will be shown on form 8606.
The non-deductible contributions cannot
be converted in isolation from any other existing traditional and rollover
IRA(s). It's best explained by example. Let's say you have a $10,000 balance in
all your existing traditional IRAs and that balance consist of $3,000 in
deductible contributions, $2,000 in previous non-deductible contributions and
$5,000 in earnings (interest, dividends & capital gains). Your basis, in
all your IRAs, is $2,000. This year you convert $5000 to a Roth. Only 20% of the $5000
conversion ($1000) will be tax free . TurboTax will divide that $2,000 basis by
the $10,000 balance to arrive at the 20%
tax free ratio. $4,000 of the conversion will be taxable. This is the way the IRS requires it to be done. The
calculations will be shown on form 8606.
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