@vikasahuja wrote:
Turbo tax asks for the year end value of non deductible IRA account. if balance is for information only, then changing the balance in Turbo Tax input changes my tax liability, why? This is the part i am confused about.
I never said the balance is for information only. I said the 5498 form is for information only. You DO NOT get the year end balance from that form (the 5498 is issue in May not year end) - you get the year end balance from the 2019 year end statements from the financial institution holding the IRA.
Yes the 2019 year end account value is absolutely required to correctly calculate the taxable amount, otherwise, as you found out, all the basis would be applied if the year end value was zero and that is NOT correct.
**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.**
