If you did not have a basis from prior years you will enter $0 for the basis (nondeductible contributions/ after-tax contributions) in step 7 and you will enter the value of all your wife's traditional, SEP, and SIMPLE IRAs on December 31, 2021, on the next screen. You can find the value of the IRA on the end of the year statement. Then TurboTax can calculate how much is taxable and nontaxable.
The nondeductible contribution for 2021 will be entered when you enter the IRA contribution under Deduction & Credits.
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “traditional IRA”
- Answer “No” to “Is This a Repayment of a Retirement Distribution?”
- Enter the amount you contributed
- Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
- Continue through the questions.
- 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 screen saying $0 is deductible).
To verify, the $14,000 are pre-taxed rollover from the 401k rollover and therefore you do not have a $14,000 basis.
You contributed the $6,000 in 2021 and converted this in 2021. You did not make a contribution for 2020 in 2021, correct?
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