Basis points for form 8606-how do I calculate this

[baldietax]

are you referring to basis (not basis points) for 8606, this question? ...

Traditional IRAs

Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?

Nondeductible contributions are tracked on Form 8606 in your prior year returns.

Yes

No

 

Traditional IRAs

If you made any nondeductible contributions in prior years, look at your most recent Form 8606. Find the box called total basis and enter the number from that box below.

If you never filed a Form 8606 just enter 0 (zero).

What was your total basis as of December 31, 2024?

 

this is the amount of "after tax" money you contributed to your Trad IRAs (any IRA not a Roth).  did you make prior non-deductible contributions, have you ever filed 8606 in your tax return?  Brokerages will report these contributions on Form 5498 usually around May.  Normally this basis will be carried over from your last filed Form 8606 if you've consistently used Turbotax with carry over of returns.  Look for your last filed Form 8606 on Line 14 this will carry over to 2025 Form 8606 Line 2.

 

The answer can be NO / $0 if you've never made a non-deductible contribution before and never filed Form 8606, but some people forget about something from 10 years ago and then lose the tax-free distribution benefit of that contribution.