topic IRA to ROTH IRA conversion and impact on Traditional IRA Basis and ROTH IRA Basis in Retirement tax questions

IRA to ROTH IRA conversion and impact on Traditional IRA Basis and ROTH IRA Basis

Yakman — Tue, 24 Feb 2026 07:28:00 GMT

In 2020, I contributed $5000 in after-tax dollars to a Traditional IRA and immediately converted $4000 to a ROTH. Am I correct in stating that this increases my Traditional IRA basis by $1000 and my ROTH IRA basis by $4000? Thank you

Re: IRA to ROTH IRA conversion and impact on Traditional IRA Basis and ROTH IRA Basis

fanfare — Wed, 06 Sep 2023 00:04:25 GMT

it all depends on the year-end value of your IRAs and your prior years basis before you took this action.

@Yakman

Re: IRA to ROTH IRA conversion and impact on Traditional IRA Basis and ROTH IRA Basis

Yakman — Wed, 06 Sep 2023 00:27:24 GMT

Got it, thanks fanfare. I was able to test this out in TT