Trying to figure out my IRA contribution basis...does it want me to figure out all-time contributions, or just for the past year?

Forum|Forum|4 years ago
February 21, 2022
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TurboTax Deluxe Online

Opus 17

Level 15

For a traditional IRA, you have no basis if you only make tax-deductible contributions. If you make non-deductible contributions, that's your basis, and it must be reported on form 8606 every year that you make a non-deductible contribution. Making non-deductible contributions in the past affects the taxation of future withdrawals, and your basis changes every time you make a new contributions, rollover, or withdrawal, which will also be reported on form 8606. Your IRA contribution basis to start 2021 is line 14 from the most recent previous form 8606 you filed, and then Turbotax will add any non-deductible contributions for this year.

(You need to keep all your form 8606s, no matter how old, because that's how you prove to the IRS—if audited–that a portion of your withdrawal was tax-free.)

argonvalynAuthor

Level 2

Thanks!

And for Roth IRAs?

My IRA service has given me 1099s, but no 8606

Opus 17

Level 15

@argonvalyn wrote:

Thanks!

And for Roth IRAs?

My IRA service has given me 1099s, but no 8606

If you made non-deductible contributions to a traditional IRA, you prepare from 8606 as part of your tax return, it does not come from the IRA custodian.

Basis is not something you should be asked about for Roth IRAs. For Roth IRAs, you sometimes need to know your direct contributions and your rollover or conversion amounts, but that's not the same as knowing your basis.

dmertz

Level 15

2021 TurboTax is asking for the total of all of your regular Roth IRA contributions made for years prior to 2021, including any contribution basis rolled over from a designated Roth account in an employer plan, minus any Roth IRA distributions made prior to 2021. TurboTax will separately ask for your basis from Roth conversions.