It depends. TurboTax is asking this question because of a specific IRS requirement on Form 8606 that is generated by how you answered a previous question.
The IRS requires your total IRA value as of December 31 if you meet either of these two criteria:
- You have "basis" (nondeductible/after-tax money) in any traditional IRA and you took a distribution or did a Roth conversion in 2025. The IRS does not let you withdraw just the tax-free money; they force you to take a proportional mix of pre-tax and after-tax money. To calculate that exact percentage, the IRS (on Form 8606, Line 6) requires the year-end value of all your traditional, SEP, and SIMPLE IRAs.
- If you told the software you made a nondeductible contribution this year or had a "basis" from a previous year, the software must generate Form 8606. If there was a distribution, Line 6 of that form is required.
If you’ve filed for 10 years without this, one of three things happened this year:
- You (or the software, based on your income limits) marked your 2025 contribution as nondeductible.
- You took a withdrawal (1099-R) from an IRA that has after-tax "basis" attached to it.
- You performed a Roth IRA conversion.
You’re right. The total value isn’t shown on the front of the 1040. It’s still needed for Form 8606, which you’ll attach to your 1040.
If you’re sure all your past IRA contributions were tax-deductible and you don’t have any after-tax “basis,” double-check the IRA Contribution section. Make sure you haven’t marked any “nondeductible contributions” or a “prior year basis” by mistake.
@Anonymous
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