AnnetteB6
Expert Alumni

Retirement tax questions

Even though it is understandable that the account value of your SEP seems unrelated to the account value of your Traditional IRAs, the question in TurboTax is absolutely correct and does not need to be changed.  

 

The wording of that question is taken directly from Form 8606 line 6.  This line says 'Enter the value of all your Traditional, SEP, and SIMPLE IRAs as of December 31, 2020 plus any outstanding rollovers.  Subtract any repayments of qualified disaster distributions.'

 

For your reference, here is a link to the 2020 Instructions for Form 8606.  The detail for line 6 is shown in the middle column of page 7 of the PDF document.

 

2020 Instructions for Form 8606

 

You should revisit your tax return and make the correction by including the year-end value of your SEP account.

 

 

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