After-tax conversion from traditional IRA to Roth IRA

Forum|Forum|11 months ago
April 12, 2025
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In 2023, I made a post-tax contribution to my traditional IRA, and I did not get a tax break for this money. In 2024, I moved ONLY the original after-tax contribution from my traditional IRA to my Roth IRA. When I talked to my financial institution in order to do this transfer, they explained that since it's AFTER-tax money, the transfer is NOT a taxable event. However, I would need to report it on form 8606. I did get a 1099-R from my financial institution and uploaded it to Turbotax. When I look at my final numbers, Turbotax is saying I have to pay taxes on part of the money I transferred from the traditional to Roth, and it doesn't look like Turbotax is triggering the 8606 form. How can I fix this?

NCPERSON1

@nicebaq if you had both pre- and post- tax money in the Trad IRA, then indeed some of the conversion is taxable. if the 40% of the Trad IRA was pre-tax money, then 40% of the conversion was taxable. You can't just move the post tax money without moving the same percent of the pre-tax money.