Hi again,
I'm still trying to get this straight in my mind. I'm 74 years old and have been taking the RMD out for the past few years (was told to do so.) These items have not come up on my taxes ever before that I am aware of. I thought (who knows if I was correct) this worked by: buying the IRA (I'm assuming the $2000 allowed me to pay lower taxes for the year I purchased it), let it sit for 20 + years collecting interest and then paid taxes on the money as I removed it from the IRA at a later time (at hopefully a lower rate). I have added nothing (no contributions from me other than that initial contribution of $2000) over the years.
Where am I going wrong? I don't understand this part at all.
"You have a basis in your IRA as far as NJ is concerned because you did not deduct IRA contributions from your NJ taxable income in all those past years. Those are unrecovered."
Sorry, but things aren't fitting together for me. Especially since I haven't made any contributions past the initial amount. Did I check something wrong on the Turbo Tax form?
Sincerely,
Craig Morgan
