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posted Jan 23, 2025 1:34:54 PM

Should line 4 on the Taxable IRA Distribution Worksheet include the end of year amounts from both my Traditional IRA and my Rollover IRA accounts?

The reason for the question is that Turbotax for line 4 on the worksheet says to "Enter the value of all your traditional IRA(s) ..." My Rollover IRA account was created when I left a company and my 401K was "rolled over" to this account. I have put in my Traditional IRA value and it calculates a different Line 13c Taxable portion value than if I enter both the Traditional account value and the Rollover account value.

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1 Best answer
Level 15
Jan 23, 2025 5:32:49 PM

Your rollover IRA is a traditional IRA and must be included when asked for the year-end total value of your traditional IRAs.  When you have basis in nondeductible traditional IRA contributions, this year-end value is needed to calculate on Form 8606 Part I the taxable amount of a traditional IRA distribution.

1 Replies
Level 15
Jan 23, 2025 5:32:49 PM

Your rollover IRA is a traditional IRA and must be included when asked for the year-end total value of your traditional IRAs.  When you have basis in nondeductible traditional IRA contributions, this year-end value is needed to calculate on Form 8606 Part I the taxable amount of a traditional IRA distribution.