Did you make nondeductible Traditional IRA contributions in the past? If yes then your basis would get carried over to line 2 on Form 8606.
If you never made any nondeductible Traditional IRA contributions or rolled over a nontaxable portion of a qualified retirement plan to the Traditional IRA then you will need to edit the basis screen during the 1099-R interview:
- Click on "Search" on the top right and type “1099-R”
- Click on “Jump to 1099-R”
- On the "Review your 1099-R summary" screen click "Continue"
- Answer "Yes" to "Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?"
- One the next screen edit the amount entered as basis on December 31, 2024.
Please see Form 8606 Line 2 instructions for additional details.
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