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Retirement tax questions
Nothing, since you are just fixing the basis that TurboTax failed to carry forward, not adding basis that had not been reported on a 8606 before. The explanation is for things like rolling a 401(k) with basis into a IRA so you need to add that to the 8606 since 401(k)'s are not reported on a 8606 so you need to tell the IRS where the new IRA basis came from.
**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.**
‎September 14, 2020
9:32 AM