When doing the 1099 part of turbotax it asked for balance of IRA, when entering my taxes skyrocketed

[tjodork]

When doing the 1099-R / 8606 part of turbo tax it asked for the balance in my IRA at the end of '23.

My wife and I both moved money from my employer tax deferred savings plans to Fidelity IRAs.

It said to look at the 5498 forms for the amount.  As soon I entered the amount the Fed taxes increased by 2500 and the MN tax also shot up.  I did not take any of the money out of the IRA to spend so the taxes should not have changed but I'm not sure what I'm doing wrong.  Any ideas ?

[DanaB27]

To clarify, are you entering a conversion to Roth IRA? 

If you had pre-tax funds moved from your employer in your traditional IRA and had after-tax funds in the the traditional IRA then the pro-rata rule applies. This means that with each distribution/ conversion you will have a taxable and nontaxable part.