Roth Conversion from Non-deductible IRA

[sami]

I have a client who, a number of years ago, put funds into a non-deductible IRA and some years into deductible IRA. She always prepared filed form 8606. Has a basis in non deductible IRA of $100,000 and her total FMV of IRA is $2,000,000. She wants to do Roth conversion of $250,000 and I am trying to prepare form 8606 in Drake and not sure what amount goes on line 6? Amy help will be appreciated.
Thank you

[kathyc2]

The form is for calculating the taxable portion after the transaction has been completed. Since you say she "wants to" do a conversion, I assume she hasn't yet done so and is looking for the tax implication? If that is true, then you don't have the amount to put on line 6. You would need to estimate what the value would be on 12.31.23 if you want the software to calculate the tax???? If her basis is 100K, and the total for all Traditional (deductible and non-deductible) plus any SEP or SIMPLE IRA's is estimated to be 2M, the 5% (100/2000) is the tax free return of basis and 95% is taxable.

[terryats]

Don't forget The IRA Aggregation Rule. Requires the owner of multiple IRAs to include a proportionate amount of any pre-tax IRA balances (traditional IRAs) with their after-tax IRA balances (nondeductible IRAs) whenever performing a Roth conversion