Why is Turbo tax asking for total value of all IRAs

[mdktech24]

After I've entered my 1099R forms for my IRAs, Turbo asks me to enter the total value of all of my traditional IRA, SEP, and SIMPLE IRA on December 31, 2025.  Is this a required entry? What do Turbo tax do with this information? It states the information is sent by mail on Form 5498. However, Form 5498 is normally send in March.

[DavidD66 · Accepted solution]

TurboTax asks for the total value of all Traditional IRAs to determine the taxable amount of Traditional IRA distributions if they include after tax contributions, back door Roth IRA conversions, for completing Form 8606 if after-tax contributions are made to an IRA and for calculating RMD amounts. 

[Mike6174]

I posted this question separately but TT is not letting me enter a number for the total value of my IRAs. The field is there but typing a number does not work. Can you help?

[Anonymous]

I've used TurboTax as an individual tax filer for 10 years. In no other year has TurboTax asked for the value of my IRA at the end of the tax year, In the case, 2025. The Internal Revenue Service (at irs.gov) doesn't ask for the value of my IRA at the end of the tax year on the 2025 1040, just the contribution I made to my IRA.  

My investment firm reports IRA distributions and pension payments; my employer reports W-2 earnings; etc., to the IRS which is all the information needed to calculate taxes due on same.  When I enter my data in TurboTax all income and IRA contributions/withdrawals are entered; this is the information pertinent to determining the tax payment due and until 2025, TurboTax did not require in order to complete my return.

The entire value of my IRA account is irrelevant to TurboTax for the purposes of calculating my tax due, and is an invasive overreach. This new request from TurboTax is the reason why I will not be using it going forward.  

[baldietax]

@Anonymous which section is presenting the question - it's commonly required on Form 8606.

[Mike6174]

For me it is the income section asking if I have any after-tax contributions to my IRA(s).  The answer is YES so my IRA has a basis that is not taxable and Turbo Tax needs the total value to calculate the tax. This section asks for the total value as of the EOY 2025 and has a place to enter the value, but it will not let me enter any number. 

[DaveF1006]

It depends. TurboTax is asking this question because of a specific IRS requirement on Form 8606 that is generated by how you answered a previous question.

The IRS requires your total IRA value as of December 31 if you meet either of these two criteria:

1. You have "basis" (nondeductible/after-tax money) in any traditional IRA and you took a distribution or did a Roth conversion in 2025. The IRS does not let you withdraw just the tax-free money; they force you to take a proportional mix of pre-tax and after-tax money. To calculate that exact percentage, the IRS (on Form 8606, Line 6) requires the year-end value of all your traditional, SEP, and SIMPLE IRAs. 
2. If you told the software you made a nondeductible contribution this year or had a "basis" from a previous year, the software must generate Form 8606. If there was a distribution, Line 6 of that form is required.

If you’ve filed for 10 years without this, one of three things happened this year:

1.  You (or the software, based on your income limits) marked your 2025 contribution as nondeductible. 
2.  You took a withdrawal (1099-R) from an IRA that has after-tax "basis" attached to it.
3.  You performed a Roth IRA conversion.

You’re right. The total value isn’t shown on the front of the 1040. It’s still needed for Form 8606, which you’ll attach to your 1040.

If you’re sure all your past IRA contributions were tax-deductible and you don’t have any after-tax “basis,” double-check the IRA Contribution section. Make sure you haven’t marked any “nondeductible contributions” or a “prior year basis” by mistake.

@Anonymous 

[DaveF1006]

If the software won't let you enter a number, it’s often because a "0" is already sitting in a hidden field. Try deleting the IRA entry entirely and then re-enter. This may clear the issue especially if this form was imported and not entered manually. 

1. Go to Federal > Wages & Income.
2. Scroll down to Retirement Plans and Social Security and select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
3. On the 1099-R Summary screen (titled "Here's your 1099-R info"), you will see a list of your entries.
4. Click the Trash Can icon (or Delete button) next to the specific 1099-R you want to remove.
5. log out and back in again to save the change
6. Re-enter your 1099 R.

@Mike6174 

[Mike6174]

Did this and it did not solve the problem. 

[user17722286091]

I agree with @Anonymous on this point. TurboTax does not need the total value of your traditional IRAs except in some very limited and unusual situations. I could understand if they asked for these figures in those situations. But asking everyone for data on their savings is an overreach and invasion of privacy. 

[Mike6174]

Having a basis for your Trad IRA is not all that unusual and, in any case, if you have one, which is totally provided for in the IRS tax code, you have to enter it to calculate your taxes correctly. Hardly an invasion of privacy if you are using software to prepare your taxes. If you don't have a basis, you just say you don't have a basis. I hope TT cleans up this section of their software.