Apparently, it needs the information to fill form 8606, and the form has these notes:
"Complete this part only if one or more of the following apply.
• You made nondeductible contributions to a traditional IRA for 2023.
• You took distributions from a traditional, traditional SEP, or traditional SIMPLE IRA in 2023 and you made nondeductible
contributions to a traditional IRA in 2023 or an earlier year. For this purpose, a distribution does not include a rollover
(other than certain qualified disaster distribution repayments from 2023 Form(s) 8915-F), qualified charitable distribution,
one-time distribution to fund an HSA, conversion, recharacterization, or return of certain contributions.
• You converted part, but not all, of your traditional, traditional SEP, and traditional SIMPLE IRAs to Roth, Roth SEP, or
Roth SIMPLE IRAs in 2023 and you made nondeductible contributions to a traditional IRA in 2023 or an earlier year."
I already indicated to TTax, in a previous question, that I have never done any non-deductible contribution, so it seems to me that it should not be asking this question and it's confusing. In fact, I entered the value of my IRAs and does not seem to fill that value anywhere in the form.
Does anybody have an explanation for this please? I'm very confused.
Thanks.
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Without getting into specifics, the value is needed to perform calculations to determine if any of your IRA distribution, contribution or rollover is taxable or subject to a penalty. It is not necessarily needed to be transferred onto a form or schedule on your tax return.
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