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jwillmas
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Traditional Roth funds to Roth IRA conversions - double taxation on contribution from prior year

In Nov 2023 I made $7500 contribution to my Traditional IRA. I did not convert this $7500 to Roth IRA until Feb 2024

 

In Nov 2024 I made $8000 contribution to my Traditional IRA. Converted $8000 to Roth IRA in Dec 2024 (over 50)

 

Gross distribution from Traditional IRA for 2024 is $15500. When inputing into Turbo tax the amount over $8000 in the Gross distribution is  getting taxed at max rate.  This is double taxation as all these funds are all non deductible and I have only converted the original funds. I was under the impression that the time of conversion was not critical, just the contributions. Am I wrong or is Turbo Tax wrong?

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1 Reply

Traditional Roth funds to Roth IRA conversions - double taxation on contribution from prior year

to report a 2023 non-deductible contribution, 2023 form 8606 must be attached.

to report a 2024 non-deductible contribution, 2024 form 8606 must be attached.

 

@jwillmas 

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