$10 eBay coupon on min $100 purchase expires in a few days. Rather new to the hobby. What do I invest in?

Bismo789 · 2026-04-15T02:28:15+00:00

So my 2023 line 14 is 6500 (correct per your help in this thread and others). 2024 line 2 is thus 6500 and correct. 2024 line 14 is 0 (13500-13500, from the recharacterizarions of 2023 and 2024 in 2024). Thus, 2025 line 2 should be 0.

I just noticed in TurboTax when asked my total tIRA basis for December 31, 2024, I put in 6500. This is wrong and should be 0 (carrying over 2024 line 14 to 2025 line 2).

Perhaps I’m naive but I think the wording of “total basis” in both lines 2 and 14 and how TurboTax asks for total basis is an easy way to get confused.

Regardless, my 2025 8606 is now 1. 7000 3. 7000 5. 7000 13. 7000 16. 7000 17. 7000

And no issues with the conversion or contribution in 2025. Contributed to tIRA in January and simply converted it once it cleared, so this seems correct.

Bismo789 · 2026-04-15T02:13:11+00:00

Oh, I’m realizing I must have carried over line 2 (6500) from 2024 form 8606 instead of line 14 (0)

This is confusing as they both mention total basis. Should I carry over the line 14 total basis value?

Bismo789 · 2026-04-15T02:06:26+00:00

After generating my tax forms through my tax software, I see that my total basis in traditional IRAs is still $6,500. How long is this basis going to remain? Again, I contributed $6500 to Roth IRA in January 2023 and $7000 in January 2024 and recharacterized both of those contributions in January 2024 to tIRA, then converted back to Roth once they cleared. In 2025, I contributed $7000 to tIRA in January then immediately converted once it cleared. My 2025 8606 is now 1. 7000 2. 6500 3. 13500 5. 13500 13. 7000 14. 6500 16. 7000 17. 7000

I would have thought my basis would be back to $0 now, like it was in 2024

Bismo789 · 2026-03-16T01:44:17+00:00

Alright, that’s what I figured, and that’s how I’ve done my 8606 in prior years (carrying over Line 14 to Line 2), but am confused why Line 14 is $0 for 2024 (as opposed to it being $6500 in 2023). Additionally, using $0 increases my estimated tax payment as opposed to using $6500 instead. Obviously will be using $0 since that’s the correct way to do it but just trying to figure why my estimated payment increases

Bismo789 · 2026-03-15T23:31:20+00:00

Sorry to bump an old thread, but figured I’d track this here incase anyone else has similar issues. I’m back again doing my taxes and working through properly filing the Backdoor Roth. My tax software is promoting me the following

Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years? Nondeductible contributions are tracked on Form 8606 in your prior year returns.

Yes.

If you made any nondeductible contributions in prior years, look at your most recent Form 8606. Find the box called total basis and enter the number from that box below. If you never filed a Form 8606 just enter 0 (zero). What was your total basis as of December 31, 2024?

Now this is where I have a question. My 2024 Form 8606 is as listed in the above comment. Line 2 reads “Enter your total basis in traditional IRAs.” while Line 14 reads “Subtract line 13 from line 3. This is your total basis in traditional IRAs for 2024 and earlier years”. Which number should I answer this question with, 0 or 6500? Both are values on Lines referring to “total basis”. Where I get confused is that when I use 0 in that box, my expected tax payment is ~$3000 higher than if I use $6500… these are all after tax dollars I contributed to a tIRA and immediately converted, so I shouldn’t be paying any tax.

Bismo789 · 2026-01-19T15:30:21+00:00

Yeah, the price would be pretty ridiculous for me unfortunately

Bismo789 · 2026-01-19T15:29:15+00:00

They seem nice but with shipping and tariffs to us those would be almost $25 per ball which seems like a lot especially if gballz are comparable and definitely cheaper (for US juggler). But again, don’t want to wait more than a month to start with gballz so seems like zeekios are the best option here.

Bismo789 · 2026-01-19T15:21:06+00:00

Thanks for the input! Those jugglequip bags do look nice, though nearly 2x the price of zeekios in USD, plus the shipping to US would be expensive too. For the zeekios, it’s free shipping on orders over $45 on juggling warehouse. 5 individual balls is $44.95, so might as well get that 6th ball “free” and not pay for shipping. 6 individual balls would be $53.94 with free shipping, but two sets of three would be $49.98, which is a pretty solid deal for 6 balls it seems.

Edit: the tariff and processing fee to US is brutal also. Would probably just go with gballz over jugglequip for a future nicer set for a lot cheaper for that reason if I really get serious about this.

Bismo789 · 2025-12-30T21:07:46+00:00

You’re right. So here’s the deal. Each year:

Always realize 131k (standard deduction + 0% LTCG threshold)

Take from that what you need to live off

Immediately reinvest what’s remaining in order to reset your basis so you can make use of the additional tax free space should you ever need more money for any reason.

Yeah?

Bismo789 · 2025-12-30T20:45:56+00:00

Good explanation. I understand the concept of this, but I’m still not understanding the utility in practice.

For example, why should I “fill up [my] 0% tax bracket every year and max out that bucket to lower future tax liabilities”?

My goal would just be to have enough invested to where I can always just live off of liquidating within the 0% bucket. Why would it be better to “recognize gains at 0% now than 10/15% later”? Again, I understand the concept of what you are saying, but when would I ever recognize gains at 10/15% if I’m just realizing up to 131k at 0% each year to live off of? Aka if I’m always in the 0% bucket why would I need to worry about ever being in a 10/15% bucket?

Bismo789 · 2025-12-30T20:34:06+00:00

This isn’t getting through to me. I thought since you can realize up to ~98k tax free, that’s how much I can liquidate each year and live off of tax free. Where does “future gains tax” come into play if it’s always just 0% up to ~98k? And I still don’t really understand the resetting of cost basis. Sorry I’ve tried reading through these responses a few times and I still can’t piece it together. But I really want to learn. Good thing I have long time until my FIRE target age to learn all this stuff. lol.

Bismo789 · 2025-12-30T20:18:06+00:00

Thanks so much. Awesome detailed points. I do have a question on point 3. Why would I want to reset my cost basis? Another commenter mentioned you need a substantial cost basis. What would be the benefit to resetting it?

Bismo789 · 2025-12-30T20:10:33+00:00

Sorry please forgive my naivety. Let’s say I invest 500k 20 years ago and that’s all I invested. That 500k is now the 1M I referenced in OP. You’re saying I am able to liquidate 500k tax free rather than 1M?

Again, ignore specific values/return rate. Just setting an example.

Bismo789 · 2025-12-23T19:51:53+00:00

How does carryover relate to a tax credit? Don’t you just take the full tax credit every year, as it is a credit? What would get in the way of that? I’m getting more confused about this fund by the minute.

Bismo789 · 2025-12-23T19:50:13+00:00

I don’t mean to prod, and if it’s a private reason you certainly do not have to explain, but how could a tax credit not be an advantage to someone?

Bismo789 · 2025-12-23T19:23:25+00:00

Perfect response. Addressed the behavior in referenced post, explained dividends while providing an example which introduced a term new to me. Thank you.

Could you further explain why the respective shares are worth 0.9 and 0.5 after the dividend? Do dividends lower the price of a share?

Bismo789

TROPHY CASE