Nondeductible IRA contrib of 5000 & converted 5415 IRA to Roth. software is using the nondeductible IRA to reduce the taxable amt of roth convrsn. Is this a glitch

[nicole2]

These are 2 separate  transactions.  NOT the same $5,000

[sjrcpa · Accepted solution]

The basis of all IRA accounts is used when calculating the taxable portion of an IRA distribution.

[rbynaker]

Yeah, I remember there's some wacky calculation that takes place if you have contributions and distributions in the same year.  I think it's in one of the 590 pubs.  But they split them a couple years ago and I couldn't tell you if it was in A or in B (or both since I think it impacts both calculations).