I recently learned that I should not be making non-deductible contributions to my Traditional IRA. My plan is to rollover my non-basis balance into my 457b, and then convert the basis to a Roth IRA.
I currently have a balance in my IRA of $135,000. This balance is comprised of a few old 401k rollovers along with a few years of non-deductible contributions. The basis as tracked yearly on the 8606 is $22,000 for my 2024 tax filing.
My question is more about timing and calculating the most up to date basis. I made contributions totaling $7,000 in 2025, and I made one contribution totaling $625 on 1/2/26 (the $625 is a 2026 contribution). Should these two amounts be added to my basis number even though I haven’t filed 2025 yet and obviously won’t file for 2026 for over a year?
Total - $135,000
Rollover to 457b - $105,375
Basis (convert to Roth) - $29,625
Edited to clarify that the $625 is a 2026 contribution.