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HL1
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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Accepted Solutions
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.

View solution in original post

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.

View solution in original post

HL1
Level 1

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

Thank You!