Retirement tax questions

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@hanaleicook wrote:

Turbo Tax IS in error.  I completed a substitute 1099-R (form 4852) to put the correct taxable amount on our IRA distribution. It's been rolled over several times and the current institution is unable to correct it because they have no record of our after-tax contributions.  But we do.  On the 1040-SR line 4a is blank, line 4b says Taxable Amount and is the GROSS DISTRIBUTION - not the revised taxable amount I entered on the 4852.  Under the line 4b is the word ROLLOVER.  I have no way to correct it.  Can you help?

 

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Is is a rollover or did you take the money?    

What code is in box 7?

Is the IRA/SEP/SIMPLE box checked?

Is the box 2b (not determined checked)?

You are probably entering incorrectly.    A 4852 is not necessary or appropriate.

Assuming that this a a Traditional IRA distribution that has a after-tax basis, then you must enter that in the interview so that the correct taxable amount can be determined on a 8606 form.    

If the after-tax basis came from a employer plan rollover the  you enter it in the same place as prior years non-deductible (after-tax contributions).

Enter a 1099-R here:

Federal Taxes,
Wages & Income
(I'll choose what I work on - if that screen comes up)
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version left side) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

You will be asked of you had and tracked non-deductible contributions - say yes. The enter the amount from the last filed 8606 form line 14 if it did not transfer. Then enter the total value of any Traditional, SEP and SIMPLE IRA accounts that existed on December 31, 2019.  Also enter any after-tax basis from employer plan rollovers not previously reported on a 8606 form

That will produce a new 8606 form with the taxable amount calculated on lines 6-15 and the remaining carry-forward basis on line 14.

NOTE: If there is an * next to line 15 then 6-15 will be blank and the calculations will be on the "Taxable IRA Distributions worksheet instead.