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Level 1

## What to enter the 'Value of Traditional, SEP and SIMPLE IRAs on December 31, 2016'? (follow up question)

Contributed non-deductible IRA of \$5,000, converted to Roth in the same year for 2012-2014.  Received 5498 for IRA contribution \$5,000, 1099R for IRA distribution \$5,000, 5498 for Roth conversion of \$5,000 each year.  Each year, in Turbo Tax - Answered 'Yes' to made and tracked nondeductible contributions to IRA.  Entered '0' as the 'Total Basis as of December 31, 201x' since the nondeductible IRA account yearend balance always 0 due to conversion to Roth.

Made IRA contribution and converted to Roth in 2015. Received 5498 for IRA contribution \$5,000, 1099R for distribution from IRA \$5,000, 5498 for Roth conversion of \$5,000. Re-characterized 2015 contribution/conversion back to the same IRA account in early 2016 before filing 2015 tax return.  Reported contribution/conversion/re-characterization in 2015 Tax Return, received tax deduction for IRA contribution and no tax on the Roth conversion.  Received 1099R for re-characterization in 2017 and entered in 2016 tax return.

All the 5498s for IRA contribution, box 1 = \$5,000, Box 5 = \$0.  Latest Form 5498 for 2015 Roth contribution box 1 = \$5,000, box 5 = \$20,000 (\$5,000 * 4 year). The 2016 yearend IRA account statement balance only has the re-characterized 2015 contribution/conversion amount. The 2016 Yearend Roth account statement balance has (\$15,000 = \$20,000 – 2015 Re-characterization).

What should I enter for 'Value of Traditional, SEP and SIMPLE IRAs on December 31, 2016'? The IRA account 2016 yearend balance around \$5,000 or IRA 5498s box 5 \$0?

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Level 20

## What to enter the 'Value of Traditional, SEP and SIMPLE IRAs on December 31, 2016'? (follow up question)

In TurboTax, enter your actual December 31, 2016 balance of around \$5,000.  (Nothing from your 2015 Forms 5498 is relevant for preparing your 2016 tax return.  Nothing in your Roth IRA is relevant.)

Entering the code R Form 2016 Form 1099-R has no effect on your 2016 tax return other than to remind you that the recharacterization was reportable on your 2015 tax return.

2 Replies
Level 20

## What to enter the 'Value of Traditional, SEP and SIMPLE IRAs on December 31, 2016'? (follow up question)

In TurboTax, enter your actual December 31, 2016 balance of around \$5,000.  (Nothing from your 2015 Forms 5498 is relevant for preparing your 2016 tax return.  Nothing in your Roth IRA is relevant.)

Entering the code R Form 2016 Form 1099-R has no effect on your 2016 tax return other than to remind you that the recharacterization was reportable on your 2015 tax return.

Level 1

Thank You!