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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
I am 60 and started taking distributions from an old IRA that had no growth for several years. Since our income has decreased due to illness, it was decided to liquidate this particular IRA. I have 3 others, two are rollovers when I medically retired from my job and 1 I started just to have a future income. I had a stroke so if things look scattered they probably are. The problem that i am having is what do I need to report. I took distributions from my old IRA that had some rollover funds, and some reportable and non-reportable funds. When I am completing the turbo tax input the section where I reported my distributions also wants the fair market value of my IRA's. When I enter the amount on the 5498 for the IRA with the mixed funds my tax refund is reduced by more than $600, if I include the estimated fair market value of all my IRA's (no 5498's for the other three IRA's yet) it goes down by more than $900. I am confused. My IRA was roughly $27,000 and $6,040 is non-deductable contributions. Am I being penalized or what? I am very confused by this process. We do not have the money to pay a tax preparer and really need the money from this return so hope someone can assist.
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
it's very simple, all your Traditional, SEP and SIMPLE IRAs have to be lumped together and the value of each added together for a grand total year end value. ( I suggest you get the numbers from your December statements). There is no estimating. Use the value on Dec 31.
It sounds like you don't have SEP or SIMPLE IRAs, just traditional.
If you closed one in 2017, that one's contribution to the total is zero.
Tell TurboTax your basis of $6040. and what you took out during 2017 (that's your 1099-R) . TurboTax will do the calculations on Form 8606 for you.
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
it's very simple, all your Traditional, SEP and SIMPLE IRAs have to be lumped together and the value of each added together for a grand total year end value. ( I suggest you get the numbers from your December statements). There is no estimating. Use the value on Dec 31.
It sounds like you don't have SEP or SIMPLE IRAs, just traditional.
If you closed one in 2017, that one's contribution to the total is zero.
Tell TurboTax your basis of $6040. and what you took out during 2017 (that's your 1099-R) . TurboTax will do the calculations on Form 8606 for you.
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
You are not forfeiting any portion of your basis that is not permitted to be applied to your 2017 distribution. Any portion that cannot be applied to your 2017 traditional IRA distributions remains with your IRAs in aggregate to be reduce to the taxable amounts of future IRA distributions. You'll always have some basis in nondeductible traditional IRA contributions until you have a zero balance in all of your traditional IRA accounts at year end.
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
The way I'm seeing this is somehow I'm being levied an additional tax on everything that's in my IRA's plus I'm being taxed on the distribution less the basis.
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
If these are truly all IRAs, it's unfortunate that you misunderstood the tax consequences of the distribution when you made the distribution, but that doesn't change the required calculation. You are not going to be taxed twice on any of this money. You are simply being taxed on it now rather than later.
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
Are they going to give me money back when my IRA Investments lose money, which they've done over the years. The other IRA'S were originally 401k's.
Do I have to report my husband's little IRA too?
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
Especially when your health fails you early and you're not allowed to work unless you want to give 50% of your income back to the government. I thought this was the purpose of our IRAs was to get us through the hard times and supplement our income when we're forced to retire when we're not ready .
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
Your unexpectedly small refund is due to an unexpected amount of ordinary income taxes, not penalties.
The benefits or drawbacks of deferring income by contributing to a retirement account are different for every individual. To some extent it depends on whether you expect to be in a higher, lower or the same tax bracket in retirement than during the earning years. With the recent reduction in the tax-bracket rates, the benefits of having deferred income to future years have increased. However, because distributions from retirement accounts are taxed as ordinary income, an argument can be made for investing in capital investments outside of a traditional retirement account rather than in a traditional retirement account to obtain taxation of gains at more favorable long-term capital gains rates. It's the job of financial planners to help you navigate these trade-offs (although some financial planners are better than others at doing so). Because the taxability of Social Security income can depend on the amount of your other taxable income, the years prior to beginning to receive Social Security income are especially important for planning how you will take your distributions from your retirement accounts to minimize the tax consequences.
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
Your IRA and his are treated separately, for purposes of Form 8606, and your distribution, include only your own IRAs.
That's one of the "surprises" for IRA retirees, the taxes are high !
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
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I have 4 IRA's, My first one that had both reportable and non-reportable contributions. I am 60 and taking distributions, I have a question about the fair market value
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