IRA Basis

Forum|Forum|1 year ago
February 18, 2025
1 reply
17 views

TurboTax has not deducted IRA Basis from 1040 IRA distributions, line 4a and 4b, to get taxable amount. How can I fix that?

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DavidD66

Level 15

Can you clarify please. What form are you referring to with 4a and 4b?

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NormVisteAuthor

Level 2

As I said, 1040.

NormVisteAuthor

Level 2

To clarify, do you have more than one Form 1099-R? Make sure you have the IRA/SEP/SIMPLE box checked.

As DavidD66 explained if you have a mix of pre-tax and after-tax funds then the the pro-rata rule applies. You can check Form 8606 for the calculation, if you have a * next to line 13 then TurboTax is using the IRA worksheet according to Pub 590-B to calculate the nontaxable part. If you have a value on December 31, 2024 in the IRA then part of your basis will be allocated to the funds left in the IRA. You cannot just deduct all of your basis first.

I have many 1099-Rs.

New question:

Turbo Tax does not add up the taxable amounts of distributions shown in box 2a in all 1099_R forms to enter on the form 1040 line 4b IRA Distributions – taxable amount.

How can I fix that?