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Assuming:
1.) 20,000 in TIRA at time of conversion
2.) Cost basis of $5,000
3.) Conversion of $5,000
4.) TIRA contains $17,000 at the end of the year

Is the pro-rating
(5,000/17,000) * $5,000 = $1,470
or
(5,000/(17,000+5,000) * 5,000 = $1,363
or something else?
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No. of Recommendations: 1
After more carefully reading the 8606, it looks like option 2 is the correct option (5,000/(17,000+5,000)) * 5,000
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