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daisy99
Returning Member

IRA distribution on prior year nondeductible contribution

I made nondeductible contribution 10 years ago and converted all to ROTH IRA in 2020.  In 1099-R I received shows entire amount as Gross Distribution & Taxable amount and both box was checked.   I don't have to pay tax twice on my  nondeductible contribution.   Can I override box 2a?  I tried that, but it didn't make any difference on tax.  How to report this?

 

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2 Replies
DanaB27
Expert Alumni

IRA distribution on prior year nondeductible contribution

No, please enter the 1099-R as shown on the form.

 

If you reported the nondeductible contribution on Form 8606 back then, then you can enter the basis when you enter your 1099-R. Then the part allocated to the basis will be tax-free. 

  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. Answer questions until you get to “What Did You Do With The Money” and choose “I moved it to another retirement account
  6. Then choose “I did a combination of rolling over, converting, or cashing out money.” and enter the amount next to "Amount converted to a Roth IRA account"
  7. On the "Your 1099-R Entries" screen click "continue"
  8. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
  9. Answer the questions about the basis and the value.
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daisy99
Returning Member

IRA distribution on prior year nondeductible contribution

Thank you

 

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