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What to enter the 'Value of Traditional, SEP and SIMPLE IRAs on December 31, 2016'? (follow up question)
Contributed non-deductible IRA of $5,000, converted to Roth in the same year for 2012-2014. Received 5498 for IRA contribution $5,000, 1099R for IRA distribution $5,000, 5498 for Roth conversion of $5,000 each year. Each year, in Turbo Tax - Answered 'Yes' to made and tracked nondeductible contributions to IRA. Entered '0' as the 'Total Basis as of December 31, 201x' since the nondeductible IRA account yearend balance always 0 due to conversion to Roth.
Made IRA contribution and converted to Roth in 2015. Received 5498 for IRA contribution $5,000, 1099R for distribution from IRA $5,000, 5498 for Roth conversion of $5,000. Re-characterized 2015 contribution/conversion back to the same IRA account in early 2016 before filing 2015 tax return. Reported contribution/conversion/re-characterization in 2015 Tax Return, received tax deduction for IRA contribution and no tax on the Roth conversion. Received 1099R for re-characterization in 2017 and entered in 2016 tax return.
All the 5498s for IRA contribution, box 1 = $5,000, Box 5 = $0. Latest Form 5498 for 2015 Roth contribution box 1 = $5,000, box 5 = $20,000 ($5,000 * 4 year). The 2016 yearend IRA account statement balance only has the re-characterized 2015 contribution/conversion amount. The 2016 Yearend Roth account statement balance has ($15,000 = $20,000 – 2015 Re-characterization).
What should I enter for 'Value of Traditional, SEP and SIMPLE IRAs on December 31, 2016'? The IRA account 2016 yearend balance around $5,000 or IRA 5498s box 5 $0?
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Retirement tax questions
In TurboTax, enter your actual December 31, 2016 balance of around $5,000. (Nothing from your 2015 Forms 5498 is relevant for preparing your 2016 tax return. Nothing in your Roth IRA is relevant.)
Entering the code R Form 2016 Form 1099-R has no effect on your 2016 tax return other than to remind you that the recharacterization was reportable on your 2015 tax return.