https://ttlc.intuit.com/community/retirement/discussion/i-made-a-nondeductible-contribution-to-my-ira-and-then-converted-that-contribution-immediately-to-a/01/210338#M18195 Sat, 01 Jun 2019 18:08:44 GMT jjasien 2019-06-01T18:08:44Z https://ttlc.intuit.com/community/retirement/discussion/i-made-a-nondeductible-contribution-to-my-ira-and-then-converted-that-contribution-immediately-to-a/01/210338#M18195 Sat, 01 Jun 2019 18:08:44 GMT https://ttlc.intuit.com/community/retirement/discussion/i-made-a-nondeductible-contribution-to-my-ira-and-then-converted-that-contribution-immediately-to-a/01/210338#M18195 jjasien 2019-06-01T18:08:44Z https://ttlc.intuit.com/community/retirement/discussion/the-short-answer-is-yes-that-is-correct-some-of-the-di/01/210340#M18196 <P>The short answer is yes, that is correct.&nbsp; Some of the distribution will be taxable but a portion will not be taxed.</P><P>The long answer is that a Traditional to Roth conversion is an IRA distribution subject to tax.&nbsp; As you have made nondeductible contributions to the Traditional IRA, the fraction of the distribution that is tax free is the ratio of the total of your nondeductible contributions in all your Traditional IRAs to the total 12/31/2018 value of all your Traditional IRAs.</P><P>Form 8606 <A rel="nofollow" href="https://www.irs.gov/pub/irs-prior/f8606--2018.pdf" target="_blank"></A></P><DIV> <A rel="nofollow" href="https://www.irs.gov/pub/irs-prior/f8606--2018.pdf" target="_blank">https://www.irs.gov/pub/irs-prior/f8606--2018.pdf</A> </DIV> is used for this calculation and makes an adjustment for the possibility that your transactions occurred in 2019.<P></P><P>Full details on contributions, distributions, and conversions may be found in IRS publications 590-A and 590-B:</P><P> <A rel="nofollow" href="https://www.irs.gov/pub/irs-pdf/p590a.pdf" target="_blank"></A> </P><DIV> <A rel="nofollow" href="https://www.irs.gov/pub/irs-pdf/p590a.pdf" target="_blank">https://www.irs.gov/pub/irs-pdf/p590a.pdf</A> </DIV><P></P><A rel="nofollow" href="https://www.irs.gov/pub/irs-pdf/p590b.pdf" target="_blank"> <DIV>https://www.irs.gov/pub/irs-pdf/p590b.pdf</DIV> </A><BR /><BR /><BR /> Sat, 01 Jun 2019 18:08:45 GMT https://ttlc.intuit.com/community/retirement/discussion/the-short-answer-is-yes-that-is-correct-some-of-the-di/01/210340#M18196 hbl3973 2019-06-01T18:08:45Z https://ttlc.intuit.com/community/retirement/discussion/if-you-started-with-a-zero-balance-in-all-iras-and-then-d/01/210343#M18197 If you started with a zero balance in ALL IRAs and then did this, you did not go through the interview properly. Sat, 01 Jun 2019 18:08:46 GMT https://ttlc.intuit.com/community/retirement/discussion/if-you-started-with-a-zero-balance-in-all-iras-and-then-d/01/210343#M18197 fanfare 2019-06-01T18:08:46Z