dmertz
Level 15
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Retirement tax questions

Until you enter the year-end value of your traditional IRAs, TurboTax uses the incorrect value of zero, resulting in  TurboTax calculating on Form 8606 that all of your basis applies to the distribution.  Once you enter the year-end value, TurboTax recalculates the correct lesser amount of basis that applies to the distribution, properly increasing the amount determined to be taxable.

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