If 95% was funded with pretax dollars, then generally 95% of
the distribution should be taxable.
You will not need to do the calculation to determine that
amount on your own. TurboTax will make
the calculation based on information that you will enter about your IRA
account.
When you enter the information that was reported on your
Form 1099-R for your distribution from the IRA that includes non-deductible
contributions, there will be a series of follow-up questions to answer at the
end of that section of the tax return.
When you have entered all of the Form 1099-Rs that you
received, you will be on the “Your
1099-R Entries” summary screen. Click
Continue to move forward and answer
more questions. These questions will include
things such as whether non-deductible contributions were made and tracked in
previous years, IRA total basis, the value of all Traditional IRAs, and any
other details needed to calculate the taxable amount of the distribution.
