Per our divorce my ex transferred to me a trad IRA funded with after-tax money. Where in the interview should this basis be entered? See IRA Info Wksht line 15.

[jeff-nnnn]

The transferred after-tax basis should end up on line 15 of the IRA Information Worksheet, but there is no data source shown in Forms mode.  Is this case not handled by the Interview?

[dmertz · Accepted solution]

In Step-by-Step mode, do the following:

1. Go to Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions
2. Make sure that the box indicating that you have a Traditional IRA is marked and click Continue.
3. Proceed to the page asking "Any Nondeductible Contributions to Your IRA?", answer Yes and click Continue.
4. Click the EasyGuide button and proceed to the page where you can mark the box indicating "I received a traditional IRA from a former spouse as part of a divorce settlement before 2017."  Do this even if the divorce settlement was in 2017.
5. Proceed to where you can enter the amount of Transferred IRA Basis that you received and click Continue.
6. TurboTax will then give you the opportunity to provide an explanation statement for this adjustment to your basis.

Doing this will place the amount on line 15 of the IRA Information Worksheet. 

[jeff-nnnn]

Thanks, dmertz.  My divorce and the related IRA transfer occurred in 2016, but I checked and your answer applies to both 2016 and 2017.  I guess what I missed was the need to use the EasyGuide.  I've never used it before.  I hope there weren't issues I missed because I didn't use EasyGuide.  I have a vague recollection of something a few years ago that didn't work in Step-by-Step and that I had to override the value in Forms.  I'll look for that button in the future.  Thanks.

[macuser_22]

Note that doing direct form entries in the forms mode will void the TurboTax accuracy guarantee because only the interview mode will tie all the proper forms together and do some of the error checking.  You are on your own in the forms mode to know what you are doing.   The forms mode is very useful to view entries, but should not be used to make entries unless you know what you are doing - it is very easy to do or miss something in the forms mode that the interview will not allow you to do or miss.

[jeff-nnnn]

Sorry if this is dragging this out, but I try to be thorough.  Since I am taking withdrawals from my IRAs, I didn't go to the Deductions & Credits section.  However, going through Wages & Income -> Retirement Plans and Social Security -> IRA...Withdrawals would have gotten me to the same place.

[dmertz]

Yes, clicking the Continue button on the Your 1099-R Entries page will get you to the same place.  I mentioned the going through the Deductions & Credits section because that will work even if you have no Forms 1099-R to enter.

Your adjustment to basis needs to be reported with the first Form 8606 Part I you are required to file after you acquired the basis.  Since you acquired the basis in 2016, as long as you took no traditional IRA distribution in 2016 and made no nondeductible traditional IRA contributions for 2016, no 2016 Form 8606 was required.  If you similarly took no traditional IRA distribution in 2017 and made no nondeductible traditional IRA contributions for 2017, no 2017 Form 8606 was required either and you'll continue to wait to report the adjustment until you do have reason to file Form 8606 Part I.