Turbo Tax questions re: 401K withdrawal

[monnie46]

I have a 401K which was opened about 1994. I left the position in 1997 and didn't contribute to it after that time. I'm retired and 63 yo. In 2025, I withdrew a portion of the funds. When entering this in TT, I don't have the answer to these questions;

1. "Did you make any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?

Nondeductible contributions are tracked on Form 8606 in your prior year returns." 

[dmertz]

This question has nothing to do with a 401(k).  TurboTax asks this question in regard to your traditional IRAs.  If the Form 1099-R that you entered has the IRA/SEP/SIMPLE box marked, the distribution is from a traditional IRA, not from a 401(k).

[monnie46]

Thank you. It is a Traditional IRA then as the box you mentioned is checked. Do I need to put a value in the subsequent question? I do not know the answer.

[DianeW777]

First, if the 401(k), unless it was a Roth, would be deductible each year of contribution and tax free at that time. If you rolled it over into an IRA and the box is checked on your 1099-R, and you made no further contributions, there was never any nondeductible contributions.

The full amount is not a required minimum distribution (RMD), based on your age, if that is the question you refer to.

Please update here if you have additional questions and we will help.

[dmertz]

Your basis in nondeductible traditional IRA contributions for previous years would have been present at the end of your most recently filed previous Form 8606 Part I, usually line 14.