I am working in the section that asks about Form 5498 and Turbo Tax has asked "Tell us the value of your traditional IRA". Would that be the total rollover contributions or fair market value of the account?
"value" = Fair Market Value on 12/31, which should be the same as the amount shown in box 5 of the Form 5498.
Box 2 of the Form 5498 is the amount rolled over from some other retirement account, not the year-end FMV. The account from which the rollover originated should have sent you a Form 1099-R that you would have entered.
Would that be the total value of contributions? Or the Fair Market value of the account?
It is the year end value of your account or accounts.
you could have IRA spread among several accounts.
you have to total them all.
@dmertz So now I am really confused, as I have two different answers. I have a 2022 Form 5498 from my investment company. From what I've read on the IRS website, this form has been submitted to the IRS. I am working in the section of TurboTax that asks about Form 5498. My husband and I are new to retirement/IRA's/contributions/etc. so I am not sure what to do here. TurboTax is asking "Tell us the value of your traditional IRA". I have the Form 5498 and I have our 12/31/2022 Year-end Investment Report. The YE Investment Report wording is different from the wording on the Form 5498. The Form 5498 has a line titled "Rollover Contributions" and a line titled "Fair Market Value". The $$$ are significantly different............
"value" = Fair Market Value on 12/31, which should be the same as the amount shown in box 5 of the Form 5498.
Box 2 of the Form 5498 is the amount rolled over from some other retirement account, not the year-end FMV. The account from which the rollover originated should have sent you a Form 1099-R that you would have entered.
@dmertz Thank you so much for your help in plain English!
When you include all IRA accounts, does that include a inherited IRA?
You would not include an inherited one. Also, be careful of how the question is worded, as sometimes you will be asked to enter the basis of your IRA at end of the previous year. Your basis would be the net of your non-deductible contributions to your traditional IRA, if any. If asked for the previous end of year value, that would be the value of the IRA on the last day of the previous year.
[Edited 3/4/24 at 9:00 AM PST]
ThomasM125 is incorrect. The value of an inherited IRA is not to be included when TurboTax asks for the year-end value of your IRAs. Everything about an inherited IRA is entirely independent of your own IRAs where you are the participant. (The only exception is if a spouse beneficiary treats the inherited IRA as the spouses own, in which case it's actually no longer an inherited IRA but instead the surviving spouse becomes the participant.)