Message Font: Serif | Sans-Serif
No. of Recommendations: 1
401Ks and ROTH IRAs are not considered for the conversion.

The cost basis is prorated based on the value, not the ratio of untaxed contributions and taxed contributions.

You have a cost basis of $9,650 ($5000 + $4650).

I am assuming the current value is greater than the non-deductible contributions.

If you convert the entire balance, the taxable amount is:
TIRA value - $9,650.

If the entire amount isn't converted, the taxable amount is:

TIRA value - $9,650
------------------- X Conversion amount
TIRA value
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.