@dmertz wrote:
@macuser_22 , perhaps I see the problem that cfcan is talking about. When you have no basis carried in from the previous year and made a nondeductible contribution in the current year, if you indicate that you converted any amount to Roth, TurboTax asks for your year-end balance. However, under these same circumstances if you simply say that you cashed out the entire distribution, TurboTax fails to ask for the year-end balance and completes Form 8606 incorrectly.
I seem to remember a similar issue last year, but I thought that was fixed. I can't remember if it was the same circumstance or not. The workaround was to enter $1 of past years basis when asked, then the years end value questions appeared, after entering the years end value, use the "back" button and enter 0 (zero) for the basis and the years end value will remain on the 8606.
**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.**
