Minimizing bookkeeping on a traditional IRA with a non-deductible component

[daverusin]

In April 2025, my wife and I filed our federal income taxes for 2024, and she made an $8000 contribution to her traditional IRA (for 2024). Today I reviewed that return; our income had risen, and only $4420 of her $8K could be deducted, so instead TurboTax gave her a $3580 non-deductible contribution to her IRA. I believe it can stay there, and when she goes to withdraw the money, she has a $3580 basis on it, i.e. she will pay income taxes only on the gains. In practice this requires a lot of bookkeeping of regular and non-deductible contributions on form 8606. What a lot of work, potentially for decades, over a smallish error! Is there a way to put an end to the mix of tax types within the IRA , by making a withdrawal or Roth conversion or something?

A related question: IRAs are property of an individual, not a couple, even though we are married-filing-jointly. On form 8606, we are told to add the value of all "your" traditional IRAs. Is that a singular or plural "you"? (My IRAs are surely confusing since I have rolled over some 403b money into them recently.)