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"the benefits of keeping the non-deductible money in a separate Roth IRA are less than they would be for someone who hasn't mingled their funds."   Perhaps that statement is not worded in a way that conveys what you meant to say.  The benefits of having money in a Roth IRA are independent of what one has in other retirement accounts.  If one has to choose between making an ordinary nondeductible traditional IRA contribution and an ordinary Roth IRA contribution, the Roth IRA contribution is always a better choice regardless of what one has in other retirement accounts.

If you've done the proper allocation to income and to the beneficiaries of your capital gains and are getting the same result, you should contact Support. Unfortunately, no one here can see your return and how you entered the data and it's also possible that there's a glitch in the software.

Hi Click, Thanks for patience, I finally understand the rules. Because of being over 59 1/2, having a Roth account for over 5 years, the "five-year-forever" covers the distributions. Sorry for being so stubborn. This is a very favorable situation, hard to believe. And, advisors themselves either do not understand it fully, or do not want to tell it explicitly. So, happy trading, and hopefully growing. I am grateful, Zoltan

OK, first thing is whether you allocated capital gain to income and to the beneficiaries.   I don't believe that's in the Distributions section, but in another section in the program. Once you do that, the exact amount should show up in the Distributions section.

I was hoping the latest update from TT today would fix the issue, but it did not.    For whatever reason the program continues to populate Schedule D such that the long-term capital gains for 2025 are assigned to both the Beneficiaries and the Estate/Trust. As I mentioned before, the result is Double Taxation!   I don't see anything under the income section of TT4B that I can change. I am claiming an inherited property (which occurred years ago) and I am getting the correct stepped-up basis.   Under Distributions, I am distributing the entire Distributable Net Income, which TT4B is stating is actually a little less than the Capital Gain and Total Accounting Income.      On Schedule D (and on the K-1’s), TT4B is adding the unrecaptured section 1250 gain to the Beneficiaries because I've specified that I am closing the Trust. But it has also buried the same amount on Schedule D owed by the Estate/Trusts for Capital Gains.    I've tried tracing the Estate/Trust tax back to the other forms that populate Schedule D, but I can't figure out where the double counting starts.

If I were to leave the 401k as is:   No tax issues.  If you are under age 55, then any withdrawals you make before age 59-1/2 will be subject to income tax plus a penalty.  Some employers might kick you out of their plan especially if you have a low balance, you have to ask them.  If they don't kick you out, you can leave it there indefinitely.   If I were to move the 401k to an IRA:   If you rollover your 401k to a traditional IRA, then the pro-rata rule would apply to any future Roth conversions -- it would make a true backdoor Roth IRA contribution impossible.  That won't matter if your income allows direct Roth contributions, but might cause a problem if your income rises again.   The rollover is non-taxable.  There is no difference between contributions and earnings since none were ever taxed, so there is no tax on a rollover.  If you do a direct rollover from trustee to trustee, you might not have to report it at all (I forget this point) but even if you do get a 1099-R, you just report that fact and tell your tax software that it was a 100% rollover.   Some additional points to consider: 1. You should evaluate your investment choices.  A 401k may offer limited investment options, but they may have lower expense ratios than buying the same fund through a private IRA.  But an IRA may have more investment options.   2. Certain types of emergency withdrawals can be made from an IRA but not a 401k.  But you can still leave the money in the 401k, and only rollover part of the funds that you need.  (For example, I did a qualified HSA funding distribution this year to put $5000 into my HSA.  That can only be done from an IRA, so first I rolled over $5K from my 403b to an IRA then rolled it over again from the IRA to the HSA.  I left the rest of my money in the 401k because I am satisfied with the investment choices.) https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions

@terrysano   Did you use the Online version?   How to view all your accounts https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx It's common to end up with multiple accounts. First LOG OUT of whatever TurboTax account you're logged into right now. Then use this TurboTax account recovery website to get a list of user ID's for an email address. Run the tool against any email addresses you may have used https://myturbotax.intuit.com/account-recovery/

TurboTax lost my 2023 return online after it was fully processed in October 2024. They gave me a link to download the app on my computer but it was not compatible with my Mac so I had to buy a new computer to download it but I still was not able find the tax return and the IRS never received it.  I have seen Internet complaints about the same problem with many many people.  There should be a Class-action suit since TurboTax is unwilling to help to correct this problem for its customers.

As far as mixing deductible and non-deductible funds. If you've been doing that for "years" you are kind of stuck with that situation.  Your traditional IRA has a mix of contributions that were never taxed (because they were deducted) and contributions that were already taxed (non-deductible). However, the entire amount you withdraw from a traditional IRA when you retire is taxable, even though you already paid tax on part of your contributions.  To not pay tax on the non-deductible contribution, you need to keep track of the non-deductible contributions on form 8606, and keep the most recent form 8606 for the rest of your life, or until the next year when you make a non-deductible contribution.  The IRS won't allow you to claim part of your withdrawal as tax-free unless you have the 8606 to prove it, they don't keep track for you.   When you withdraw, you use form 8606 to avoid tax on part of the withdrawal.  Suppose your balance is $100,000, of which $20,000 was deductible contributions, $10,000 was non-deductible contributions, and $70,000 is growth.  You withdraw $5000.  Because 10% of your balance is from non-deductible contributions, 10% of the withdrawal is non-taxable.  That also reduces your non-deductible basis by $500.  Then the next year, if the account is worth $105,000 due to growth, but your non-deductible basis is $4500, 4.28% of your withdrawal is non-taxable.  And so on and so on.  A tax program will do the math for you, but you have to keep copies of the 8606 forms for as long as you have money in an IRA, and should not discard them after 3 or 6 years which is the usual advice for most tax papers.    And it makes it much harder to do Roth IRA conversions.   As far as reversing a contribution: You said that you rolled over the 401k to a traditional IRA, and you also contributed $200 of non-deductible funds.  You can't reverse the rollover.  That's done.  but you could reverse the $200 contribution, if I understood your statement correctly.   But that may be pointless if your traditional IRA already mixes deductible and non-deductible contributions.     If you were in a situation where all your traditional IRA funds were deductible, adding $200 of non-deductible contributions creates an unnecessary complication of needing form 8606 and having to track the basis for the rest of your life.  But if you were already in that situation, it doesn't change anything to add more pre-tax money by rollover.  That's just something that will need to be reported and taken into account if you ever want to withdraw or convert the money.     "What will be the easiest way to handle this that I can max my contributions" You can always contribute the maximum to a traditional IRA no matter your other income, you just might not be able to deduct it.  If you are in the income range where a deductible IRA contribution is not allowed but a Roth IRA is allowed, it would be cleaner to contribute to a Roth IRA rather than make non-deductible contributions to a trad IRA.  But since you already have mixed deductible and non-deductible contributions in a trad IRA, the benefits of keeping the non-deductible money in a separate Roth IRA are less than they would be for someone who hasn't mingled their funds. 

Thank you so much for the explanation I appreciate it. Please bare with me as I'm trying to understand this complicated issue at least it's to me.   "Mixing pre-tax (deductible) and after-tax (non-deductible) contributions in a traditional IRA has some complications and paperwork issues that you need to know about." - I have this issue and contributed for years as I was informed I could make contributions but lately realized I been mixing pre-tax and after-tax and have form 8606 for after-tax contributions and now decided to stop putting after-tax contributions since I was not contributing the much.    "Instead, if you already made a non-deductible contribution to a traditional IRA, you could reverse that and contribute to a Roth instead (that is called recharacterizing, and you would have your broker do that for you).   Then you could contribute additional funds directly to the Roth IRA." - Can you please explain this a little cause when I asked the broker he said I can't do it now and will need an employer 401k to do backdoor Roth IRA. Are you saying I can open a stand alone Roth IRA now or maybe later next year and transfer all the after-tax contributions I made to the Traditional IRA over the year to a Roth IRA now without a backdoor.    What will be the easiest way to handle this that I can max my contributions for if not now later when I get a job hopefully. Thanks in advance for your guidance.   

See this article for more information on this topic:   https://ttlc.intuit.com/turbotax-support/en-us/help-article/small-business-processes/add-remove-dependent/L5MKscASB_US_en_US “Did the replies above answer your question? If so, select “Mark as Best Answer” to help others find this thread. Respond below with any follow-up questions so we can point you in the right direction.   If you’d like to change subjects, Select a Topic and find the button to Post your Question. Thanks for joining the Community, @[insert username]   **Say “Thanks” by clicking the thumb icon in a post **Mark the post that answers your question by clicking on “Mark as Best Answer”  

Assuming it was only personal use, you would go to the section for sales of stock, investments and other assets.  Choose the asset type (I think it will be "something else" in this case.). Enter your purchase price, purchase date, selling price, selling date.

“Did the replies above answer your question? If so, select “Mark as Best Answer” to help others find this thread. Respond below with any follow-up questions so we can point you in the right direction.   If you’d like to change subjects, Select a Topic and find the button to Post your Question. Thanks for joining the Community, @Bruce    **Say “Thanks” by clicking the thumb icon in a post **Mark the post that answers your question by clicking on “Mark as Best Answer”  

“Did the replies above answer your question? If so, select “Mark as Best Answer” to help others find this thread. Respond below with any follow-up questions so we can point you in the right direction.   If you’d like to change subjects, Select a Topic and find the button to Post your Question. Thanks for joining the Community, @lhouse77    **Say “Thanks” by clicking the thumb icon in a post **Mark the post that answers your question by clicking on “Mark as Best Answer”  

A W-9 is just a form to collect your information.  The builder may be planning to issue a 1099-MISC to report the payment as income to you.   If the amount is less than the price you paid for the home, it is not taxable income.  But, it does reduce your cost basis in the home (as if you simply paid less in the first place).   You may be able to increase your cost basis by the cost of repairs, depending on what is needed.  Your cost basis is used to determine your capital gains when and if you sell.     How you report this depends on whether you are using Turbotax desktop (installed on your own computer) or online.   If using the desktop program, you enter the 1099-MISC as miscellaneous or "other" income.  It will appear on line 8z of schedule 1.  Then you go to Forms mode and make a manual entry to line 24z of the same amount, which will subtract it from your income.  You can write a short explanation like "Settlement with builder over defects."  This way you show the income so it matches the 1099 on file, and you show the subtraction.  This is the IRS approved method.   If using Turbotax online, you can access line 24z (unless the changed the program for 2025, you could not in the past).  Instead,  enter the 1099-MISC as miscellaneous or "other" income.  Then create another item of miscellaneous income with a negative number to offset the 1099 income.  Both numbers will appear on line 8z and the negative adjustment will zero out the income to make it non-taxable.  This is not strictly correct, but is the best you can do with the online program, and the IRS seems to be ok with it. 

You should contact the IRS directly in response to the letter (there should be contact information).   Also, hit the link below:   https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-audit/turbotax-audit-support/L6AcMoNFD_US_en_US