IRA Information Worksheet

[mbreezy981]

Part 1, item 2, Year-end value on 12/31/2021. The person has 1 IRA Account and 1 Roth IRA account. The Roth IRA account was created this year upon converting some money from our IRA to Roth IRA. 

The TT form references form 5498 as the source, but that does not get sent (for 2021) until May 2022, right?

We did receive a letter from Equity Trust that references Fair Market Value of the IRA account, but that value is much less than the total value of the IRA. What value should be supplied:

- The account's total value as of 12/31/2021, as viewed from the account statement?

- The Fair Market Value supplied in the letter received on 1/26/2022

- The value from 2020's 5498 which is closer to the account's total value in the first bullet

[AnnetteB6 · Accepted solution]

Enter the account's total value on 12/31/2021.  If you have an account statement that shows that value, enter that number.

Your next Form 5498 will be issued after May 31st, which is the deadline for IRA administrators to report information to the IRS regarding account contributions.

[weblackburn]

Why does TT ask for the FMV of my Trad IRA on 12/31/21 when the RMD is based on the value the IRA as calculated on the 12/31/20 amount?

[AnnetteB6]

The value of the IRA at the end of the tax year (12/31/2021 for 2021 tax returns) is used to calculate the taxable portion of any IRA distributions that were taken in 2021 if there were nondeductible contributions made to the account over the years it has been in existence.  

This is a different calculation than the one for the Required Minimum Distribution (RMD).  

@weblackburn