@ReformedGuy wrote:
You rock! Thanks for the excellent reply - complete with screen shots. Awesome!
Soo.... now I get to the TurboTax screen where it's asking for the 'Value of Your Traditional IRA'. So I gather they're looking for the Dec 31 balance of ALL my non-Roth IRAs?? Why do they need that? (my distribution is already fully taxable!). Would this include any of my Employer retirement funds? (I think these are 401(k) funds and not IRAs - correct?)
You only get that question if you answered yes to the question that asks if you have any non-deductible contributions in your IRA. The total value of all Traditional, SEP and SIMPLE IRA's that existed on Dec 31, 2020 is so the nondeductible basis can be prorated properly between the 2020 distribution and total value of All IRA accounts. Your non-deductive "basis" must be reported on a 8606 form each year that you make a non-deductible IRA contribution.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
