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After tax contributions to one's TIRA made perfect sense in the years before the Roth (1998 I believe), when one's AGI was too high to the contribution to be deductible. Wife and I did this for many years, as typically I hold the tax inefficient securities (bonds, REITs, utilities) in our tax deferred accounts and growth-oriented securities in taxable accounts.

Yes, TIRA withdrawals are proportioned between pre and post taxed account value(s). I too would probably be complaining, were it not for TurboTax.

And I have talked to many over the years who have made after tax contributions to their TIRA and have no idea what a form 8606 is. So unless they figure it out or have their tax preparer figure it out, its doubletaxationville when they make their withdrawals.

And to complicate this just a wee bit more....if one works for an employer whose 401(k) plan allows after tax contributions, when they do their TIRA rollover, an 8606 is not issued, thus the 'basis' must be tracked separate from any existing 8606 and then must be reported on a form 8606 in the year of a TIRA withdrawal or Roth conversion.

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