topic Re: Calculating IRA basis in Get your taxes done using TurboTax

Calculating IRA basis

samskims — Mon, 09 Mar 2026 07:42:52 GMT

I have contributed post tax money to a nondeductible IRA in 2019, 2020, 2021 of $6000 each year. Each year, I have completed a back-door roth IRA conversion that same year that I have contributed to my nondeductible IRA. My first year (2019) basis was zero. My question is, does my basis increase each year by $6000 or does my basis return back to zero once that back-door roth ira conversion was performed.

Re: Calculating IRA basis

ErnieS0 — Fri, 18 Mar 2022 23:24:21 GMT

Your basis goes back to $0 once you complete your backdoor Roth conversion.

The whole idea of a backdoor Roth is to put after tax money into a Roth so you don't have to do a taxable conversion. This is done by funding a Traditional IRA with after tax dollars and moving that into a Roth when your income is too high to make a normal Roth conversion.

Re: Calculating IRA basis

fanfare — Sat, 19 Mar 2022 04:51:12 GMT

If you file correctly, your Forms 8606 for each activity will show exactly that.