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?

[pcondit]

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.

[dmertz · Accepted solution]

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.