Hi, I was following this until the reason was stated why the total value of my traditional IRA is needed.Let me give my example:
-In 2015 I contributed to my Traditional IRA $6500 as a non-deductible IRA contribution. When filing my taxes that year I submitted an 8606 for a non-deductible IRA of $6500.
-Then in 2022 I took a $6500 distribution from my traditional IRA, assuming there is not any tax implication as I already paid taxes on that money.
- I received a 1099-R that stated: Gross Distribution - $6500, Taxable amount not determined, Normal Distribution.
- I answered 'Yes' to the question on 'Any Non-Deductable Contributions in your IRA?
- The next step asked for my basis in which I entered $6500.-Everything up to that point was fine in Turbotax-Deluxe as it did not impact my tax.
-Then TT asked for the value of all my traditional IRA's and when I entered that value which is quite large. TT then says I owe more taxes.
Why does it matter what my traditional IRA balance is and why is this needed? I am only taking a distribution of the same amount ($6500) that I made for a non-deductible contribution?
