Why is Turbotax asking for the FMV of all IRAs, submitted on form 5498

[florence3]

Everything I read and have been told is that form 5498 is not a reported form for our tax return, yet Turbotax is asking for the FMV of all IRAs. I didn't get a form 5498 for all of my accounts, only one so I don't know how to answer this question. Also, this is the first time I've been asked for the FMV; does this not apply to a work related 401a/403b?

[fanfare]

If you have a penalty on Form 5329, that item will be relevant.

If your IRA is worth more than the penalty, enter any amount greater than the penalty.

@florence3 

[florence3]

Goodness, I am now aware of yet one more form to watch for and my rabbit hole lined with forms continues! I appreciate your input fanfare, thank you!

For the IRAs we didn't get a 5498 on, how do I know the FMV? Is it just the balance as of December 31? 

[fanfare]

due to TurboTax bugs, many users are getting a wrongful penalty. Did you get penalized?

to avoid wrongful penalty, for each 1099-R, tell TurboTax that the distributed amount is the calculated required amount.
OR

to avoid wrongful penalty, for each 1099-R, tell TurboTax that the calculated required amount is -0-.

[florence3]

Oh, I think I know why this question was triggered this year; my husband inherited money from a traditional IRA and I had to confirm it was a full distribution and we fulfilled the RMD.
Otherwise, we aren’t at the age yet for our own RMD. We’re doing rollovers and conversions, but no actual withdrawals. 
I don’t see that we had a penalty applied anywhere. 
Am I on track with why this question of fmv came up? 

[DanaB27]

To clarify, you are seeing the FMV of all IRAs at the end of the retirement interview? If yes, then this question is for Form 8606 when you convert funds from a Traditional IRA that had nondeductible contributions.  You can find the value on December 31, 2024 on your end of the year statement.

[fanfare]

inherited IRAs have nothing to do with your Traditional IRA, and vice versa.

---
Always print a copy of your completed tax return for your records, and review it carefully before e-Filing.
You will need it if you are audited by the IRS, to contact the IRS, or to amend if a TurboTax update changes your return or for any other reason,
SUCH AS, ....

to amend after submitting a return with a wrongful penalty

AND, to find your AGI next year.

@florence3 

[florence3]

Yes, definitely will review thoroughly before submitting. 
I appreciate your time and discussion @fanfare thank you! 

[florence3]

@DanaB27  , I'm sorry I missed your message. Yes, at the end of entering our 1099-R's, Turbo tax asks:

Tell us the value of your (both mine and spouse) traditional IRA

Enter the total value of your traditional IRA, SEP, and SIMPLE IRA accounts on December 31, 2024.

This information is sent by mail on form 5498. Do not include ROTH IRA's. 

I think this question applies to our traditional IRAs' year end balance, not our 401/403's through work, correct?

The only withdrawals we had were ROTH conversions, and a total distribution from an inherited IRA, but we did conversions in prior years as well.  We did not have nondeductible contributions.  I don't recall going through this turmoil last year, hope I didn't miss something.

Thanks for taking the time to reply, I appreciate your help!

[DanaB27]

Correct, you do not include the value of your 401/403's through work. You only include the value of your traditional IRA. Don't include the inherited IRA, if this had a basis you need to fill out a separate Form 8606 outside of TurboTax. Please verify that you indicated in the follow-up questions, after entering the Form 1099-R for the inherited IRA, that you inherited this IRA. 

[florence3]

Yes, I will go through and double check all answers. Thanks so much!