When doing a Roth conversion of a non-deductible contributions from traditional IRA . is a rollover IRA included in the list of all IRA balances to determine tax free %

[kpmkrishnan]

I have currently two  IRA accounts . 1. Rollover IRA (401k from previous employer),  2. Roth IRA.  with some balance in each.
I want to do a backdoor IRA by opening a new Traditional IRA account , add $ and then move that amount to the Roth IRA .  I was told that  the below computation needs to be applied to calculate what percentage of the transfer is tax free
?
  Tax-Free Percentage=  TND / (YV C)  
?
where:
TND=Total non-deductible contributions
YV=Sum of year end value of all IRA accounts
C=Conversion amount
?
my Question is ,  should the balance in Rollover IRA be included in calculating YV from above .

[Critter-3]

ALL of the balances in ALL traditional IRA accounts are taken into consideration when making a roth conversion  so if you have pre tax balances from an old 401K in the IRA then the back door conversion will NOT work for you unless you convert the entire balance at the same time in the same tax year.  Depending on your other income and the amount in the IRA this could be very costly.

Now if your new employer will allow you to roll the old 401K to the current 401K so that your balance in that IRA is zero by the end of the year  a back door conversion is possible and practical.  

[Opus 17]

Even though your traditional IRA was funded via a rollover, it still counts against you if you attempt a "backdoor" Roth conversion.  You would need to convert the entire IRA amount if you can afford the tax, or find some other way to invest the funds you have on hand.