ErnieS0
Expert Alumni

Deductions & credits

Yes. Enter your actual contribution even if you don’t get a deduction. As Tax Expert @MarilnG1 says, TurboTax will put your after-tax basis on Form 8606. That shows IRS you contributed after-tax money so your withdrawals won’t be 100% taxed when you retire.

 

If your contributions are nondeductible, consider recharacterizing them to a Roth IRA (assuming you are under the income limits). A Roth generally offers more advantages than a nondeductible traditional IRA contribution because your earnings are tax-free upon withdrawal.

 

With a nondeductible traditional IRA, only your after-tax contributions are tax-free.

 

You can recharacterize until you file your tax return. If you file an extension, you have until the extension deadline.

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