Retirement tax questions

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@PT313 wrote:

Thanks MacUser22.

Yes, I did  follow you way to enter the numbers. Here is what I did, 

I used "search" to find the IRA area, and opened the StepStep Page. 

When Asked: "If you contributed to IRA or ROTH IRA in 2021", if the answer is no, it's finished although it is the truth! If I answered Yes, I can go through to the next page. "Is this a Repayment or Retirement distribution" Weather I answered "yes" or "no", it goes to the next page, military, answer is no.

The next page is the one you mentioned, "have you transferred the money into regular IRA"

1. if the answer is no (which is true), and I went through the rest of the pages, TurboTax told me that 'you have a penalty because you shouldn't contribute to ROTH IRA! " Of cause I knew it! I have no earned income. But the money I put in was transferred from IRA to ROTH Conversion! Why TurboTax can't work on it!
2. If I answered "yes" TurboTax askes me the details about the transfer, and went through a few more pages like, track the IRA basis, previous contribution, withdraws, excess contribution in 2021, Etc. etc. Finally it told me:  "Your IRA contribution isn't permitted!" It was frustrating!

I didn't see anything else, no 8606 form, no instruction on how to work on the $2000 which I entered when I followed your instruction on your first reply.

I shall check your link and find the old 2002 8606 form. Hopefully I can find it from my old tax return. God, it was 20 years ago! The finical institute who manages my IRA had told me at that time, all I need was the 5498 and 1099R forms!

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If you cannot prove your 2002 non-deductible contribution and have or  file a 2002 8606 form then the non-deduction can be disallowed as if it never happened.   The IRS usually does not keep records that old so if you enter the basis inn the 1099-R interview they might never catch it, but that is up to you.