mini recap of the situation:
I should have submitted a form 8606 in 2007 when i added nondeductible 4k to a tIRA and also in 2010 when I converted the tIRA to a Roth IRA. Since I failed to file form 8606, in 2012, the IRS sent me a letter to tax me on the converted amount in 2010. This seems to have been “resolved” by the IRS since they accepted my response without a reply.
So basis that the IRS tracks is only for tIRA, SEP, and SIMPLE IRAs per form 8606.
So now that the money is already in a Roth IRA, that in itself is going to have tax free distributions at retirement correct? I won’t need to track Roth basis since I don’t intend on pulling any money out early.
But moving forward, I would need to have form 8606 whenever I contribute into a tIRA and convert it the next day to a Roth IRA.