RMD TAX

[wrseguin]

It occurred to me I might not have completed Turbo tax correctly.  On the page "Enter 1099-R, line 1, I entered the amount shown on the1099.  On line 2a, I entered the same amount, and I checked "Taxable amount not determined."

Several years ago, I entered my basis for this IRS and others.  The return contains a completed Form 8606. 

My question is, does the program take my basis into account when it computes the tax for this IRA entry?  I am hoping I am not being taxed on my original after-tax contribution.

And did I make the correct entries for 2a and 2b?

[Bsch4477]

This discussion will help you. 
https://ttlc.intuit.com/community/retirement/discussion/does-anyone-know-why-turbo-tax-basic-handles...

[macuser_22]

The 1099-R interview in TurboTax will ask of you had a prior after-tax basis (or might self populate it if the amount carried over form prior returns) and will asd for the years end value of all Traditional IRA accounts.    That will be used to calculate and pro-rate the basis over the current distribution and total IRA value.  That calculation is done on lines 6-15 on a 8606 form

You can NEVER withdraw ONLY the nondeductible part - it must be prorated over the entire value of ALL Traditional IRA accounts which include SEP and SIMPLE IRA's. (For tax purposes you only have ONE Traditional IRA which can be split between as many different accounts as you want, but for tax purposes they are all added together).

For example using rough figures: if you had $60K of nondeductible contributions in an IRA with a total value of $600K (10:1 ratio), then when you take a $60K distribution from any IRA account $6,000 would be nontaxable and $54,000 would be taxable (same 10:1 ratio) , with the remaining $54K of basis staying in the IRA for future distributions. As long as there is any money in the IRA, there will be some basis.

TurboTax will ask for your non-deductible "basis" and then the *Total Value* of *all* Traditional IRA, SEP and SIMPLE accounts as of Dec 31, of the tax year. That is so the prorating of the basis can be properly proportioned between the current years distribution and the remaining IRA value. That is done on the 8606 form.