I am 60 and started taking distributions from an old IRA that had no growth for several years. Since our income has decreased due to illness, it was decided to liquidate this particular IRA. I have 3 others, two are rollovers when I medically retired from my job and 1 I started just to have a future income. I had a stroke so if things look scattered they probably are. The problem that i am having is what do I need to report. I took distributions from my old IRA that had some rollover funds, and some reportable and non-reportable funds. When I am completing the turbo tax input the section where I reported my distributions also wants the fair market value of my IRA's. When I enter the amount on the 5498 for the IRA with the mixed funds my tax refund is reduced by more than $600, if I include the estimated fair market value of all my IRA's (no 5498's for the other three IRA's yet) it goes down by more than $900. I am confused. My IRA was roughly $27,000 and $6,040 is non-deductable contributions. Am I being penalized or what? I am very confused by this process. We do not have the money to pay a tax preparer and really need the money from this return so hope someone can assist.
