Timing DOES matter as well as other activity in the account that tax year. And, yes, you can have an empty IRA with a leftover basis.I am not really sure that the timing matters? In the example you provided of Form 8606 above, are we supposed to say there is a $200 basis left when the final balance in the IRA is $0? << dubious, and head-scratching! But if you say so... >>
That's what would have happened if you opened up your first IRA last year (remember all IRAs are considered as co-mingled) and made a non-deductible contribution, then it lost value before you converted it.
That's why you should do Backdoor Roths by putting cash in the IRA and convert it soon after.
Statistics: Posted by celia — Wed Apr 24, 2024 9:56 am