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New Member
posted Feb 1, 2023 3:12:26 PM

Turbo tax is not offering me the option to enter a non-taxable basis on my traditional IRA withdrawal but does on my inherited IRA. Why?

TT has tracked my non-taxable basis and this is my first withdrawal.

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1 Replies
Level 15
Feb 1, 2023 4:57:58 PM

Perhaps you are confusing the two Forms 1099-R.  TurboTax never asks for your basis on a distribution from an inherited IRA, it just asks for the taxable amount that you must calculate outside of TurboTax.

 

The distribution from the inherited IRA will have code 4 in box 7 of the Form 1099-R.

The distribution from your own IRA will have code 1, 2 or 7 in box 7.

 

Make sure in the questions that TurboTax asks after entering the details of the Form 1099-R that you correctly indicate which one is inherited.  (For some reason TurboTax does not automatically determine that from the code in box 7.)