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Retirement tax questions
To verify, did you have any earnings before converting the funds? If yes, then these will be taxable in the conversion.
Did you have any pre-tax funds in the IRA/SEP/SIMPLE IRA? If yes, 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.
To confirm you made the nondeductible contribution in 2024 for 2024 and then converted it in 2024?
Or did you make a contribution for 2023 that was converted in 2024? If yes, then you should have a 2023 Form 8606 with a basis on line 14 which has to be entered when TurboTax asks about your prior basis:
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- Click "Continue" and enter the information from your 1099-R
- Answer questions until you get to “Tell us if you moved the money through a rollover or conversion" screen and choose “I converted some or all of it to a Roth IRA”
- On the "Here's your 1099-R info" screen click "Continue"
- Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
- Answer the questions about the basis from line 14 of your 2023 Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs
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April 14, 2025
8:00 AM