ThomasM125
Employee Tax Expert

Get your taxes done using TurboTax

If you had distributions of non-deducted IRA contributions, all of your distributions for that year from traditional IRA's will appear on form 8606, that is the way the form works. Line 7 says Enter your distributions from traditional IRA's, it doesn't mention excluding distributions that are taxable. 

 

You enter both form 1099-R's in the same place in TurboTax. The codes on the form and answers to the questions dictate how the distribution is reported on your tax return.

 

For a traditional IRA with deducted contributions, you would usually see code 7 in box 7 (normal distribution) and the taxable portion may be listed in box 2(a) on your form 1099-R but sometimes not.

 

You will be asked if you transferred or rolled the distribution to another IRA, which you need to say "no" to. You will also be asked if you had any nondeductible contributions to the IRA, and you have to answer no to that. Then that distribution will be shown as taxable on your tax return.

 

The form 8606 will determine what amount is taxable from your distribution from your IRA that has non-deducted contributions.

 

 

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