DanaB27
Expert Alumni

Get your taxes done using TurboTax

I cannot recreate your issue. To confirm, you followed the steps below and your traditional IRA contribution was fully deductible?

 

The question about the basis is about nondeductible contributions you made prior to 2022 (the basis in your traditional IRA before 2022 line 14 of your last filed Form 8606).

 

If you want to make a traditional IRA contribution for 2022 nondeductible then you have to select to make it nondeductible in the follow-up question (step 10):

 

  1. Login to your TurboTax Account 
  2. Click on "Search" on the top right and type “IRA contributions” 
  3. Click on “Jump to IRA contributions"
  4. Select “traditional IRA
  5. Answer “No” to “Is This a Repayment of a Retirement Distribution?
  6. Enter the amount you contributed
  7. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  8. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes” if you had a nondeductible contribution before this tax year.
  9. Enter your basis in the Traditional IRA from your 2021 Form 8606 line 14 (if you had a basis in the prior year)
  10. On the “Choose Not to Deduct IRA Contributions” screen choose “Yes, make part of my IRA contribution nondeductible” and enter the amount (if you have a retirement plan at work and are over the income limit it will be nondeductible automatically and you only get a warning and then a screen saying $0 is deductible).

 

 

Please be aware, if you had any pre-tax funds in your traditional/SEP/SIMPLE IRAs then the pro-rata rule applies. This means that with each distribution/ conversion, you will have a taxable and nontaxable part. 

 

@Wongtgc 

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