Should prior year IRA distributions contribute to the year-end balance?

[dmertz]

Actually, I think that the page that is asking for prior-year distributions is asking for the value for the purpose of determining the amount of the penalty on Form 5329 for an excess traditional IRA contribution, should it be needed, not for anything having to do with Form 8606.  (TurboTax asks for the year-end value separately for these two different reasons.)  Still, prior-year distributions are irrelevant to determining your year-end value for the purpose of an excess contribution penalty.

[thomadon1]

I’m sorry but I still don’t understand. Can you explain it further? I just can’t grasp why they’d ask this on “tell us the value of all your trad ira accounts”.

I checked 2020 TT and it asks about 2019 distributions too. 

[thomadon1]

Apologies for the spam posts but I followed there this year end value goes. You are correct. Whatever I enter on the trad IRA section under year end value goes to form 5329 to figure out the penalty I would owe. 

The 1099-R section that asks about my traditional Ira year end value tracks to the 8606. 

It still makes no sense though as to why it would ask for a prior year distribution when pertaining to my current year end value. 

Since I have no excess contributions and my year end value 12/31/21 was 0 I’m going to enter 0 and be done. Does that seem sensible?

Is there a way TT can remove that line about distributions?