The conversion will be prorated and be around 94% taxable so you will add around 12700 to your taxable income but I didn't do the calculation with much care so it will be a bit off however you can step through 8606 with the years in the dates incremented to get the exact numbers: https://www.irs.gov/pub/irs-pdf/f8606.pdfThe rollover amount is 230k.
The contributions yet are for 2023, 2024. These have also been converted to Roth (as mentioned in the above timeline).
You'll have a basis remaining of about 800 carried over on form 8606 so subsequent conversions if performed would add that to any aftertax contributions you make but growth in the ira might increase the pretax part so if you do more conversions you might have a higher or lower percentage of it be taxable and your choices are:What would be a reasonable strategy going forward? I assume I will continue to contribute every year to Trad (as usual). But, should I continue to convert them to Roth (immediately after contribution) or not (for some reason)?
1. Stop making aftertax contributions
2. Make contributions each year but don't convert them then at the end of the five years try to roll the pretax part back into a plan if that's an option
3. Contribute and convert then pay a fair amount of tax on the conversion every year understanding that there's nothing magic about converting the amount of the contribution anymore
Statistics: Posted by placeholder — Mon Apr 15, 2024 1:20 am — Replies 18 — Views 2711