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Mike2216
Level 1

Consolidate 3 conventional IRAs containing non-deductible contributions.

I want to consolidate 3 conventional IRAs, 2 are rollovers. The contributory IRA has non-deductible contributions. Will TurboTax continue the Form 8606 associated with the non-deductible contributions?

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Accepted Solutions
macuser_22
Level 15

Consolidate 3 conventional IRAs containing non-deductible contributions.

IRA's are already "consolidated".    For tax purposes, you only have one Traditional IRA (and one Roth IRA if you have a Roth) that can consist of as many separate accounts that you want.     The IRA value and any non-deductible "basis" applies to the aggregate total of all Traditional, SEP, and SIMPLE IRA accounts that exist.

 

Moving (rolling) an IRA account from one custodian to another has no effect on the tax or non-deductible basis.

 

TurboTax tracks your total basis - rollovers have no effect.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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3 Replies
macuser_22
Level 15

Consolidate 3 conventional IRAs containing non-deductible contributions.

IRA's are already "consolidated".    For tax purposes, you only have one Traditional IRA (and one Roth IRA if you have a Roth) that can consist of as many separate accounts that you want.     The IRA value and any non-deductible "basis" applies to the aggregate total of all Traditional, SEP, and SIMPLE IRA accounts that exist.

 

Moving (rolling) an IRA account from one custodian to another has no effect on the tax or non-deductible basis.

 

TurboTax tracks your total basis - rollovers have no effect.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Mike2216
Level 1

Consolidate 3 conventional IRAs containing non-deductible contributions.

Thanks for your quick and knowledgeable reply. Mainly, I wanted to be sure TurboTax has no problem with consolidation. I have used TurboTax for many, many years. I just wanted to be sure that TurboTax will maintain the Form 8606 as it always has even though RMDs are already being taken. Thanks again.

fanfare
Level 15

Consolidate 3 conventional IRAs containing non-deductible contributions.

It makes no difference how many IRA accounts you have.

You must add up the total year-end value yourself.

 

If there are no distributions or conversions, the year end value is not needed.

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