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"Keep in mind that the taxable portion of the IRA you are converting will be determined based on the proportion of taxable money in ALL your traditional and SIMPLE IRAs combined".

This pertains to the fact that you may (or may not) have made non-deductible contribution(s) to your IRA, and that you may have more than one IRA.
Say you have two traditional IRAs. The one you want
to convert to a Roth contains only deductible contributions and is worth $15000. The other one is worth $25000 and contains $4000 in non-deductible contributions. The statement means that 4000/25000+15000= 10% of your conversion is not taxable.
Many people think that they save paperwork by having one IRA with deductible contributions, with non-deductible ones in a different IRA. Not true, because when there is a withdrawal, you calculate the deductible portion as if there were only one IRA.
There are many reasons for having more than one IRA, but simpification of what is deductible and non-deductible isn't one of them.
Best wishes, Chris

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