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I converted a traditional IRA to a Roth in 2000. I did this by transferring from Trustee A to Trustee B, and then converting, since Trustee B told me it could not be done in a single step.

The problem is, Trustee B waited one business day to do the conversion, and the NAV went down just a bit, so there was a slight loss. My question is, what do I do about that loss?

I think I know the answer to my own question: since the traditional IRA comprised only fully-deductible contributions, and earnings, I therefore had no basis in it. If I had no basis, then I can't claim any loss. I just want someone who knows this stuff better than I do to confirm this for me. :)

As a side note, the NAV has taken a plunge since I did the conversion, and now I have to pay tax on money that has since vanished. That pretty much sucks.
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