TurboTax is requiring total value of trad IRA, SEP, and SIMPLE IRA accounts on Dec 31, 2025 (form 5498 info). How can I avoid this?

[mattzemke]

We have traditional IRA's with zero basis and have done Roth IRA conversions, but can't see why this info is required.

[MinhT1]

TurboTax needs to know the value of all your IRA accounts at year end when you take a distribution or convert part of your IRA to a Roth IRA. This is in order to calculate the basis of the distributed or converted part by applying the pro rata rule.

When your Traditional IRA has basis (from the nondeductible contributions) as reported on form 8606, you have to apply a prorated amount of basis to the distributed or converted amount.

Please read this IRS document for more information.

[mattzemke]

Thank you, MinhT1, for the response.

Does it matter that I have no basis, as have never made nondeductible contributions to any IRAs?  So, form 8606 will get populated but it will show that my IRA to Roth conversion is fully taxable.  And assuming that is true, I am thinking there is no need to wait for another tax form nor report balance.  

Thanks for any further insight.  

[MinhT1 · Accepted solution]

Even if your Traditional IRA has no basis, form 8606 is required by the IRS to calculate the taxable part of your Roth conversions.

See this IRS document, page 2 Who must file?

Form 8606 requires you to enter the value of all your traditional IRAs as of December 31, 2025, plus any outstanding rollovers on line 6. So you would need this information. You can access this information from your IRA statement for December 2025, without waiting for form 5498.