- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
You stated that the $1,700 were pre-tax, therefore the $1,700 do not fall under the "... include nontaxable (after-tax) rollovers ... " category. You do not add the $1,700 to line 2 of Form 8606. The $1,700 will be taxable when you take them out of the traditional IRA.
Since you have pre-tax and after-tax funds mixed in the IRA the pro-rata rule applies. TurboTax will ask for your value of all your traditional, SEP, and SIMPLE IRAs on December 31, 2023 (click continue after you enter all Form 1099-R). And then TurboTax uses this and the other information from Form 8606 to calculate the nontaxable part of the conversion on line 13 according to the pro-rata rule.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
**Mark the post that answers your question by clicking on "Mark as Best Answer"
‎February 8, 2025
3:05 AM