Separating my basis from gains for IRA withdrawal transferred to Roth IRA

[jbalter32]

Hi!

My wife and I started to fund our Roth IRA this year in part by transferring our after-tax IRA bases to our Roth accounts. When we entered our information in turbotax, there is no option that we found to claim these values as our basis, and instead we are being taxed for the fraction of our gains in the total account multiplied by our withdrawals. How do we adjust this in turbotax to state that we specifically withdrew our bases this year?

[MinhT1]

When partially converting your IRA to a Roth IRA, you are subject to the pro rata rule.

The pro rata rule is a requirement by the IRS that prevents taxpayers from selectively converting only the after-tax portion of their IRA to a Roth IRA. Instead, it's taxed in proportion to your pre-tax and after-tax contribution percentages.