dmertz
Level 15

Get your taxes done using TurboTax

The only way to verify that the amount on line 2 is correct would be to examine all of your past traditional IRA contribution records, particularly Forms 5498, and all IRA deductions and Forms 8606 shown on your past tax returns.  Absent the ability to do that, you would just have to assume that the amount that TurboTax has carried forward all of these years is correct.  Had you ever answered No to TurboTax's question asking if you ever made nondeductible contributions to your traditional IRAs, TurboTax would have silently deleted this information carried forward from past tax returns.

 

As Mike9241 said, the IRA custodian has no way to know your basis in nondeductible traditional IRA contributions.  A non-round number shown on line 14 of your 2006 Form 8606 suggests that you were covered by a workplace retirement plan for 2006 and your modified AGI for the purpose was slightly above the limit where a full traditional IRA contribution would be deductible.

 

Form 8606 is one of the forms that the IRS requires that you retain forever in case the IRS ever questions what you report as the nontaxable amount of any traditional IRA distribution.

 

Mike9241, I think that vr_rastergraf, is referring to the investments presently in the traditional IRA being 2 years old.  The purchase and sales history within a traditional IRA are meaningless with regard to anything on Form 8606.  Cost basis is irrelevant with regard to investments in an IRA.