cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

If I had non-deductable contributions to a separate IRA prior to 2016 what impact does the 2017 distribution I took from another IRA which never had non-deduct contrib?

On my 1040 line 15b my distribution from the IRA  was reduced by $3800 as compared to line 15a is this correct? What should it be, same as 15a? Why? I am over age 65.

1 Best answer

Accepted Solutions
Level 20

If I had non-deductable contributions to a separate IRA prior to 2016 what impact does the 2017 distribution I took from another IRA which never had non-deduct contrib?

Your basis in nondeductible traditional IRA contributions applies to your traditional IRAs in aggregate.  Essentially, all of your traditional IRAs are treated together as if they were a single traditional IRA.  It does not matter which IRA received your nondeductible traditional IRA contribution.  Because you have some basis in nondeductible traditional IRA contributions, any distribution that you receive from any of your traditional IRAs will be partly nontaxable until your have completely depleted all of your traditional IRA accounts.  The nontaxable and taxable amounts of any distributions you make from any of your traditional IRA accounts will be calculated on Form 8606.

2 Replies
Level 20

If I had non-deductable contributions to a separate IRA prior to 2016 what impact does the 2017 distribution I took from another IRA which never had non-deduct contrib?

Your basis in nondeductible traditional IRA contributions applies to your traditional IRAs in aggregate.  Essentially, all of your traditional IRAs are treated together as if they were a single traditional IRA.  It does not matter which IRA received your nondeductible traditional IRA contribution.  Because you have some basis in nondeductible traditional IRA contributions, any distribution that you receive from any of your traditional IRAs will be partly nontaxable until your have completely depleted all of your traditional IRA accounts.  The nontaxable and taxable amounts of any distributions you make from any of your traditional IRA accounts will be calculated on Form 8606.

Level 1

If I had non-deductable contributions to a separate IRA prior to 2016 what impact does the 2017 distribution I took from another IRA which never had non-deduct contrib?

I truly appreciate your answer and quick response.