Where do I enter the 12/31/2020 value for my IRAs on Form 8606, Line 6?

[MaryK4]

After you enter your 1099-Rs, you will get the follow-up question "Any nondeductible Contributions to Your IRA?" (see below).  Answer Yes and the next few questions will be used on your 8606.

Your IRA basis is the total basis for all traditional IRA accounts combined together. This prevents manipulation by a taxpayer trying to use the basis for one IRA account to offset withdrawals from another account.  See Form 8606 Line 6.

[m_ross1]

I am using Turbo Tax Premier - on-line.  I get the screen that says "Any Nondeductible Contributions to your IRA?"  But I do not get the next section "Tell Us the Value of Your Traditional IRA?"  That is the part I need.  The next section I do get, asks me for my basis, which I entered.  

[DanaB27]

Please click continue after entering your basis and the next screen you will be able to enter the value of your traditional IRA on December 31, 2020.

[yellowhammer1]

I can find nowhere in Turbo Tax a place to enter my 12/31/2021 total IRA balance/value.  When I hit Continue after entering non deducted contributions on form 8606, I never get a place to enter the 2021 ending value.

[DawnC]

The year end value of your IRA is used on Form 8606 to calculate the taxable portion of an IRA distribution when there are nondeductible contributions in the account.   If you aren't taking IRA distributions (Form 1099-R), or if you have no nondeductible contributions to recover, that information is not required.     

To trigger the 8606 in TurboTax

1. Open your return if it isn't already open.
2. Inside TurboTax, search for this exact phrase: IRA contribution information (copy and paste it if needed).
3. Select the Jump to link in the search results.
4. Proceed through the IRA section, answering questions as you go.
5. When you reach the screen Any nondeductible contributions to your IRA? answer Yes, then continue.  

Basis is not the same as value on Form 8606.    Line 6 has the value and Line 14 reflects the tax basis.  

@yellowhammer1 

[yellowhammer1]

Worked with Turbotax yesterday for literally hours, and no one there could tell me where/how to enter info for Form 8606, line 6.  When working on Form 8606, no such prompt comes up.

[DanaB27]

Please be aware, you only need to enter the value of all traditional/SEP/SIMPLE IRAs if you took a distribution/made a conversion. You will enter the value in step 8 below.

Please follow these steps to enter your Form 1099-R for conversion:

1. Click on "Search" on the top right and type “1099-R” 
2. Click on “Jump to 1099-R”
3. Click "Continue" and enter the information from your 1099-R
4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion” and choose “I converted some or all of it to a Roth IRA”
5. On the "Your 1099-R Entries" screen click "continue"
6. Answer "yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
7. Answer the questions about the basis from line 14 of your 2020 Form 8606 and click “continue”
8. Enter the value of all traditional, SEP, and SIMPLE IRAs on December 31, 2021.

Please be aware, that TurboTax might use the Taxable IRA Distribution Worksheet (per IRS Pub. 590-B) to calculate the nontaxable portion. Then TurboTax won’t fill lines 6-12 of Form 8606 but you will have a star next to line 13.

@ yellowhammer1

[Still_Another_Bob]

I, too, had what sounds like the same problem you and a few others have had:  Distributions from a traditional IRA to which we have made non-deductible contributions in the past, but no contributions in the past few years since we retired (and none in 2021), and for which we have been filing Forms 8606 each year since we made the non-deductible contributions.  No problems in past years when we have been filing our taxes, but this year TurboTax did not prompt for the 2021 year-end fair market value or basis for prior year.  I, too, spent several hours on the phone with two different support people trying everything we can think of to force TurboTax to ask for these two pieces of information, but with no luck.

In prowling around through this Community forum some more, though, I found another recent entry (March 2022) by a user named "MNOP" who sounded like he was having the same problem and noticed his following statement:  "I spent nearly 5 hours on the phone with a "tax expert" (Sat, 5Mar) (today 10 Mar). The end result seemed to be I had to wait for an update scheduled for 31 Mar."

Since for me it was now March 31, 2022, I decided to give TurboTax one more try.  I deleted all of the "Wages" information (1099-INTs, 1099-Rs, 1099-DIVs, etc) and re-entered it.  This time TurboTax did prompt me for the fair market value and basis and the associated Form 8606 now looks reasonable.  (I still need to check the entire return before I'll pronounce it "correct.")

Was there truly a software update on March 31?  Or did I just happen to clear something else out that was causing the problem when I deleted all of the "Wages" information?  I guess we'll never know.

[KT36]

They apparently did not fix it, because the 2023 version asks the question "enter the value of all IRAs on 12/31/2022, but it does not fill in Line 6 on form 8606.  If you go to 8606, line 6 and double click, it takes you to a worksheet that will allow you to fill in the number, but it does not transfer the number to the 8606.

[BillM223]

The 8606 is the form for tracking non-deductible contributions in your IRAs. And yes, on line 6, it asks for the value of all your IRAs on 12/31/2022. HOWEVER, this same question is asked on form 5329, line 17, as it calculates the penalty you owe on excess IRA contributions.

Is it possible that non-deductible contributions in your IRAs, or the probably more common excess IRA contributions that were not withdrawn?

[KT36]

I have no penalty.  The only place on a form where I can enter the value of all IRAs is the IRA worksheet (which is where TT navigates to if I try to enter directly into the 8606. However, the value of all IRAs does not show up on the 8606, line 6. 

[DanaB27]

Please be aware, that TurboTax might use the Taxable IRA Distribution Worksheet (per IRS Pub. 590-B) to calculate the nontaxable portion. Then TurboTax won’t fill lines 6-12 of Form 8606 but you will have a star next to line 13.

@KT36 

[wvert2]

Did anybody ever figure this out? 

Similar to users above, I am beyond frustrated at this. I have spent 5+ hours with chat / phone support and they are straight up guessing and not even close to figuring this out. I can easily complete Form 8606 by hand, just have no clue how to follow the prompts to get it to show the correct basis. I cannot get my return to reflect paying pro rata taxes. 

At this point I should have just written everything by hand.  Discussing with a 'Live Expert' is no help whatsoever. 

[JamesG1]

I am not sure for what reason you need to access IRS form 8606.

In TurboTax Online, I was able to generate IRS form 8606 Nondeductible IRAs to report a taxable amount of a traditional IRA with nondeductible contributions.

I entered the IRS form 1099-R Distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, in.... with

• Taxable amount not determined checked,
• Box 7 code checked, and
• IRA/SIMPLE/SEP box checked.

I continued through the TurboTax screens.  

• At the screen Any nondeductible contribution to IRA, select Yes.  Continue.
• At the screen Let's find your IRA basis, enter basis in nondeductible contributions.  Continue.
• At the screen Tell us the value of your traditional IRA, enter value of IRA's on December 31, 2023.  Continue.

@wvert2