Suggestion: RMD from IRA with nondeductible contributions

[leojbourne]

When taking RMD distributions from an IRA with nondeductible contributions, form 8606 is not presented and has to be opened manually.  If this form is not opened and filled in correctly by the user, an incorrect tax amount is calculated by TurboTax desktop 2025.  Suggestion: modify TurboTax to show a data link from taxable amount on the 1099R to the 8606 if there is a carryover amount already there.  If there is no carryover amount and this is an initial calculation, ask whether there are nondeductible contributions to the IRA, and if so, present the 8606.  Remind that the user must provide the year-end value of the IRA.

[dmertz]

Whether or not an IRA distribution is an RMD has nothing to do with TurboTax preparing Form 8606.

You have a valid concern that, when there is a distribution that is required to be reported on Form 8606 Part I, TurboTax fails to catch the case where the user fails to enter the year-end balance in traditional IRAs.  Your suggestion to include such a check has been made numerous times over many years and it has fallen on deaf ears.  TurboTax should flag as an error a blank year-end value when Form 8606 line 7 or line 8 has a value, but no effort has been made to implement that.  TurboTax should not assume a blank line 6 is the same as zero.

[RachelW33]

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