Calculating the non-taxable portion of an RMD

[pucksfriend]

I have a basis in my IRA. In previous years TT has asked me questions to assure that the basis is used to reduce the taxable amount of my RMD. This year I can't get TT to ask me these questions, so my entire RMD is entered as taxable.

1. Is there a way to get TT to interview me on this topic?

2. If not, what do I need to do to get the 8606 filled out correctly

[DanaB27 · Accepted solution]

Please follow these steps to enter your basis for the RMD distribution:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Click "Continue" and enter the information from your 1099-R
5. Continue through the questions
6. On the "Your 1099-R Entries" screen click "continue"
7. Answer "yes" to "Any nondeductible Contribution to your IRA?"
8. Answer the questions about the basis and value.

[Gongolo]

The instruction given do not match TurboTax 2021.

  At no point TurboTax ask about Nondeductible contributions.

[DanaB27]

Please make sure that you click “Continue” on the “Review your 1099-R info” screen (“Your 1099-R Entries” screen TurboTax Desktop).

The question “Any Nondeductible Contributions to your IRA?” will only come up for distributions from a traditional IRA please make sure your IRA/SIMPLE/SEP box is checked:

1. Login to your TurboTax Account 
2. Click on "Search" on the top right and type “1099-R”
3. Click on “Jump to 1099-R”
4. Click “Review” and verify the IRA/SIMPLE/SEP box is checked
5. Click “Continue” on the “Review your 1099-R info” screen
6. Continue through the questions until the “Any Nondeductible Contributions to your IRA?” screen

@Gongolo