Nondeductible contributions in a traditional IRA
If someone has only nondeductible contributions in a traditional IRA and a ROTH IRA, does the person have to include the amount in the ROTH IRA for the calculation coverting the traditional IRA to the existing ROTH IRA? Or does the person only count the nondeductible contributions for the IRA conversion?
Permalink Submitted by Alan Spross on Wed, 2010-03-24 01:22
Roth balances do not count. The adjusted year end balances of all owned TIRA, SEP IRA and SIMPLE IRA account are used in determining the % of basis that exists for calculating the amount of the distribution or conversion that is tax free.