dmertz
Level 15

Retirement tax questions

Presumably you received no traditional IRA distributions in 2017 or 2018.

 

After entering the 2019 Form 1099-R for the distribution from the traditional IRA:

  1. Click the Continue button on the Your 1099-R Entries page.
  2. When asked, answer Yes, you made and tracked nondeductible contributions to your traditional IRA.
  3. Click the EasyGuide button on the page that follows.
  4. Proceed and mark the box indicating that you transferred money from an employer's retirement plan in 2019 or a previous year.
  5. Enter the amount shown in box 5 of your 2017 Form 1099-R reporting the distribution from the 401(k).
  6. Enter an explanation of this adjustment to your basis in nondeductible traditional IRA contributions, that this adjustment is for after-tax basis rolled over from your 401(k).
  7. Assuming that you made no nondeductible contributions directly to your traditional IRAs, leave your IRA Basis on December 31, 2018 (that would otherwise come from line 14 of your previously filed Form 8606) blank.

TurboTax will include the basis adjustment on line 2 of your 2019 Form 8606 and will include the explanation statement in your filed tax return.

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