Did you take a total distribution of *all* Traditional IRA accounts to that the 2017 December 31 value of *all* existing Traditional IRA accounts was zero?
If not then any after-tax basis must be prorated between the 2017 distribution and the 2017 year end value of all accounts.
The 1099-R interview asks if you tracked your non-deductible basis and then to enter it. The next screen asks for the 2017 Dec. 31, value of all Traditional, SEP & SIMPLE IRA accounts. If there were any such accounts, failing to enter that value will result in the entire existing basis to wrongly applied to the current distribution making the tax lower that what it should be and will result in a IRS audit letter an about a year with a tax bill.
The calculations are done on lines 6-15 on a 8606 form that will not be available until about Feb 12 for filing. The 2017 year end value of all account would be on line 6 if you had any accounts. It should only be zero if no accounts existed.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
