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Level 3
posted Feb 22, 2025 7:25:51 PM

IRA Cost Basis for nondeductible contributions

When I completed the TT interview I mistakenly did not accept the nondeductible IRA cost basis figure that TT showed that had been carried forward from previous years. Now I need to go back and hopefully find and accept the IRA cost basis figure that I unfortunately changed.

 

I've considered deleting and re-adding the 1099R in hopes that would trigger that IRA cost basis question but I am afraid to do thinking I might cause more problems.

 

I have gone back and cannot find that question in the interview. What is the best way to correct this mistake I made?

 

I would greatly appreciate and advice.


Than you kindly.

 

 

 

 

0 2 1347
1 Best answer
Expert Alumni
Feb 23, 2025 2:00:26 AM

You can enter the prior year basis either in the IRA contribution interview or in the retirement section.

 

In the retirement section:

 

  1. Click on "Search" on the top right and type “1099-R”  
  2. Click on “Jump to 1099-R”
  3. On the "Review your 1099-R info" screen click "Continue"
  4. Answer "Yes" to "Any nondeductible Contributions to your IRA?" 
  5. Enter he basis from line 14 of your 2023 Form 8606 (or last filed Form 8606)

 

 

In the IRA section:

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “traditional IRA”
  4. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
  5. Enter the amount you contributed
  6. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  7. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
  8. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (or last filed Form 8606).

2 Replies
Expert Alumni
Feb 23, 2025 2:00:26 AM

You can enter the prior year basis either in the IRA contribution interview or in the retirement section.

 

In the retirement section:

 

  1. Click on "Search" on the top right and type “1099-R”  
  2. Click on “Jump to 1099-R”
  3. On the "Review your 1099-R info" screen click "Continue"
  4. Answer "Yes" to "Any nondeductible Contributions to your IRA?" 
  5. Enter he basis from line 14 of your 2023 Form 8606 (or last filed Form 8606)

 

 

In the IRA section:

 

  1. Click on "Search" on the top right and type “IRA contributions” 
  2. Click on “Jump to IRA contributions"
  3. Select “traditional IRA”
  4. Answer “No” to “Is This a Repayment of a Retirement Distribution?”
  5. Enter the amount you contributed
  6. Answer “No” to the recharacterized question on the “Did You Change Your Mind?” screen
  7. Answer the next questions until you get to “Any Nondeductible Contributions to Your IRA?” and select “Yes”
  8. Enter your basis in the Traditional IRA from your 2023 Form 8606 line 14 (or last filed Form 8606).

Level 3
Feb 23, 2025 9:41:31 AM

Thank you very much or your detailed response to my question. 

 

It worked. The only issue I had was looking for the "search" function because I am using an online version of TT which handles searches differently.

 

Thank you!