I am confused about Roth Deposits on (screenshot attached):
Pralana online > Review > Tabular Projections > Account Statements
Roth
Deposits
- Roth conversions (pre-tax amount)
- Roth conversions (after-tax amount)
So the Roth Deposits has two parts: "pre-tax amount" and "after-tax amount".
How does that work?
Maybe I'm just reading this wrong.
When you have made non-deductible (post tax) contributions to your t-IRA, then Roth conversions are pro-rata between the regular pre-tax portion and the post-tax portion. You do the math on Form 8606 each year. To make that simpler to understand, in my case, before Roths were created, I made some non-deductible contributions to my t-IRA. They amount to about 1% of the t-IRA account balance, so when I do a Roth conversion, 99% is taxed and 1% is not taxed.
