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Level 3
posted Mar 26, 2021 11:37:39 AM

Calculating the non-taxable portion of an RMD

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

0 3 1368
1 Best answer
Expert Alumni
Mar 27, 2021 9:00:55 AM

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.

 

3 Replies
Expert Alumni
Mar 27, 2021 9:00:55 AM

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.

 

Level 1
Feb 19, 2022 3:34:36 AM

The instruction given do not match TurboTax 2021.

  At no point TurboTax ask about Nondeductible contributions.

Expert Alumni
Feb 19, 2022 4:59:28 AM

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