Retirement tax questions

In order to apply the non-deductible contribution a 2009 8606 reporting the nondeductible contribution on line 1, 3 and 14 is required. 

When you enter the 1099-R the interview, after the 1099-R summary screen will ask for the prior year non-deductible basis.  You would enter the $5,000 from line 14 on the 8606.  Then it will ask for the total 2017 year end value of all Traditional, SEP and SIMPLE IRA's that still existed.   Only if no IRA accounts still existed would that be zero.

If it is zero then the $3,500 would go on the 1040 form line 15a with a zero taxable amount on line 15b and the $1,500 loss would be carried to line 23 on Schedule A as an itemized deduction.

You can mail a stand-alone 8606 form for 2009 that you misssed and download from the IRS here:

Form:  https://www.irs.gov/pub/irs-prior/f8606--2009.pdf
Instructions: https://www.irs.gov/pub/irs-prior/i8606--2009.pdf

**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.**

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