DanaB27
Employee Tax Expert

Retirement tax questions

To confirm when you say "another IRA (employer backed IRA if that matters)" is this really a traditional/SEP/SIMPLE IRA? Not a 401(k)?

 

No, if you only had traditional, SEP, or SIMPLE IRAs then you have entered this correctly. The IRS considers all traditional/SEP/SIMPLE IRAs as one account no matter how many accounts you actually have. Therefore, you have to enter the value of all of your traditional/SEP/SIMPLE IRAs accounts. 

 

Generally, distributions from traditional/SEP/SIMPLE IRAs are fully taxable unless you had a basis. If you have pre-tax funds and a basis in your traditional/SEP/SIMPLE IRAs then the pro-rata rule applies. This means that with each distribution/ conversion, you will have a taxable and nontaxable part. You can see the remaining basis on line 14 of Form 8606, this basis can be carried forward. Therefore, each distribution/conversion in the future will have a taxable and nontaxable part until the basis is all used.

 

If you didn't make any contribution for 2022 then you will not enter anything under IRA contributions (deduct traditional IRA contribution).

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