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bojoe01
Returning Member

Why does Turbo Tax ask for the total of all my Traditional IRA accounts? I am under age 60 and not making withdrawals, so there should be no need for this information.

I do not see any generated form 5329  in my list of forms (Additional Taxes on Qualified Plans and Other Tax-Favored Accounts).  After reviewing this video this seems to clearly explain that my single  non-deductable contribution to my IRA will be partially taxable, due to the basis calculation.  I total missed this point when making the IRA non-deductible contribution and thinking in the future I would not pay any tax on that contributed amount.  This is the video on found on internet.

 

https://www.youtube.com/watch?v=IElAs_Hcw7I

AnnetteB6
Expert Alumni

Why does Turbo Tax ask for the total of all my Traditional IRA accounts? I am under age 60 and not making withdrawals, so there should be no need for this information.

I did not watch the entire video, but I believe it was explaining that whenever you have a mixture of deductible and non-deductible contributions in a Traditional IRA or multiple Traditional IRA accounts, then every distribution is considered to be partially taxable and partially non-taxable.  

 

Even though your distribution amount exactly matched your non-deductible contribution, you cannot deem that your distribution was taken only from the non-deductible portion of the Traditional IRA.

 

@bojoe01 

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clarnold
New Member

Why does Turbo Tax ask for the total of all my Traditional IRA accounts? I am under age 60 and not making withdrawals, so there should be no need for this information.

I have the same Roth conversion situation filing 2022 taxes. What did you do? Just not answer?

clarnold
New Member

Why does Turbo Tax ask for the total of all my Traditional IRA accounts? I am under age 60 and not making withdrawals, so there should be no need for this information.

to clarify:

Retired, not contributing to IRA but did convert money to Roth within same account 

TT is asking for year end balance of traditional IRA

Why does Turbo Tax ask for the total of all my Traditional IRA accounts? I am under age 60 and not making withdrawals, so there should be no need for this information.

As Julie S explained earlier,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.  

 

In your case, since there were no IRA distributions for which you would be issued the 1099r to calculate taxable income based on your ending IRA value, (you did "NOT" take nondeductible contributions- you only converted to  Roth), there is  nothing to  report for the year end balance in your traditional IRA account and you may simply leave it blank.

 

Have a good evening.

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