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Nondeductible IRA contrib of 5000 & converted 5415 IRA to Roth. software is using the nondeductible IRA to reduce the taxable amt of roth convrsn. Is this a glitch

nicole2
Level 1

These are 2 separate  transactions.  NOT the same $5,000

 

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sjrcpa
Level 15

The basis of all IRA accounts is used when calculating the taxable portion of an IRA distribution.


Ex-AllStar

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2 Comments 2
sjrcpa
Level 15

The basis of all IRA accounts is used when calculating the taxable portion of an IRA distribution.


Ex-AllStar
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rbynaker
Level 13
Yeah, I remember there's some wacky calculation that takes place if you have contributions and distributions in the same year.  I think it's in one of the 590 pubs.  But they split them a couple years ago and I couldn't tell you if it was in A or in B (or both since I think it impacts both calculations).
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