Why do I need to enter the value of ALL my IRAsi into TT

[s246]

All I did was conversion of some funds from Trad IRA to Roth IRAs (belive it is called a backdoor contribution), no additional contributions made this year as we retired so can no longer contribute to an IRA. Just wanted to convert some  traditional funds to a Roth IRA to avoid RMD requirements in a few years. Thought those funds were just considered taxable funds. To the best of my knowledge there are no limits as to the amount so do ot see the reason to report value of all IRA funds? TT is requiring a number, at present I just entered $1 as do not understand why I need to enter anything at all. 

Thank you.

[MindyB]

In a "backdoor" Roth conversion, taxpayers roll a nondeductible IRA into a Roth IRA. Because they already paid taxes on that amount, converting it to a Roth is expected to be be tax free (unless any earnings are also converted).

The problem is the pro-rata rule. The IRS doesn't let you just convert that "after-tax" money if you also have "pre-tax" money (like earnings or deductible contributions) in any of your Traditional IRAs. Instead, they treat all your IRAs as one big bucket and tax the conversion proportionally. For example, if 10% of your total IRA value is after-tax money, then only 10% of your conversion is tax-free, and the other 90% is taxed as ordinary income.

This is why TurboTax needs your total account value, it has to calculate that percentage. If you enter $1, the software thinks you have no other IRA money and might incorrectly compute the conversion.

Here is some information you may find helpful: Rollovers of after-tax contributions in retirement plans

[baldietax]

this is required by IRS for Form 8606 where this pro rata calculation occurs to determine how much of your conversion is taxable - see Line 6.

https://www.irs.gov/pub/irs-pdf/i8606.pdf

Turbotax will suggest you need 5498s which don't generally come until May but per IRS instructions you should use your 12/31 brokerage statements.