Hi All,

So a person has been accumulating non-deductible IRA contributions (which also has some growth) for the past few years. They haven’t been converting to ROTH because they have a small (~$35,000) rollover IRA. If they decided this year to convert to ROTH, they can convert everything at once correct? The non-deductible basis would not be taxed since it was never taken as a deduction. The rollover IRA of $35,000 plus the growth in the nondeductible IRA would be taxed as ordinary income and added to AGI for 2018. This would all be done now at the same time, and December 31, 2018 IRAs would have “0” balances, and therefore Pro-Rata rule is not an issue.

Am I correct here or missing something?

Thank you!