Backdoor Roth Conversion in Turbo / unclear @ ending IRA values

[bugmenot]

Thank you for the help. Your assistance and this thread have been about the best resource on this. Hopefully it will help others.

[bugmenot]

Sorry, just one more question on this I forgot to ask. Even though I only converted $6500 last year, I still had to pay tax on $1. Not that I'm worried about that extra 25¢ or so, but just understanding why and how the numbers worked out. Is that because I had an $0.80 balance on my 5498 for the fair market value from last year? (Which was not converted last year.) Is this due to the pro-rata rule? Appreciate the insight.

@DanaB27 @fanfare @DavidD66 

[AnnetteB6]

Yes, that remaining balance of interest income in the Traditional IRA caused the pro rata rule to come into play.  Getting the balance back to zero by the end of the year will eliminate this for your 2024 return.

@bugmenot 

[bugmenot]

Thank you very much for the help. I've really scoured the internet for these answers. This thread is among the best resources now. I appreciate everyone's responses.