topic Traditional IRA basis reporting in After you file

Traditional IRA basis reporting

kathy1000 — Thu, 06 Feb 2025 00:18:47 GMT

I am SO confused about the Traditional and Roth IRA reporting in Turbo Tax. I've been using Turbo Tax since WAY back and I have returns from 2011 to 2018 that progressively show an increase in my Roth basis, but then 2019 is seems to have dropped the prior basis and only reported the 7000 that I put in my Roth that year and still shows as my Roth basis. In 2020 I put another 7k in, but the prior year basis again was not carried forward to it still only showed 7000 total in basis. I retired at the end of 2020 so added no more. Today, doing 2024 taxes, it's still showing 7000 as a basis and it should be more like 93k - should I just fat finger that amount in this year and keep checking it?

For Traditional IRA, I show NO basis reported to IRS ever. So while I never actually opened, nor contributed to a traditional IRA, I had a govt TSP account that I actually rolled over to a JANUS traditional IRA. Should I have reported that IRA? What about my 401k with another company that also rolled over to a Traditional IRA? Should I just total those up and report it this year? Or do I need to go back and so some resubmissions?

Re: Traditional IRA basis reporting

DanaB27 — Fri, 07 Feb 2025 15:55:31 GMT

No, you only have a basis in the traditional IRA if you made after-tax contributions. Traditional TSP and 401(k) are pre-tax accounts and therefore your rollover to the traditional IRA won't cause a basis in the traditional IRA.

It is best if you keep track of the Roth IRA basis yourself but if it is incorrect in TurboTax then you can edit that information. For your information once you are over 59 1/2 you don't need the contribution information anymore, because your Roth IRA distributions will be a Qualified Distribution and your Form 1099-R should have code T or Q. Qualified Distributions are not taxable.

Re: Traditional IRA basis reporting

kathy1000 — Fri, 07 Feb 2025 15:43:04 GMT

Right on the deductible basis - there is none of that. But it's asking me to "enter the value of all traditional IRAs, SEP, and Simple IRAs on Dec 31, 2024". Do I just put that in now, even though I never reported anything before? TT says it is reported to me on Form 5498, but I've not received that from the Janus Traditional that I rolled over my TSP to.

Re: Traditional IRA basis reporting

DanaB27 — Fri, 07 Feb 2025 15:54:20 GMT

Yes, you will enter the total value on Dec 31, 2024 as show on your end-of the year statement from Janus Traditional. If you have more than one traditional, SEP, or Simple IRA, then you will need to add the values on Dec 31, 2024 together.

To confirm, when you received the Form 1099-R for the rollover you entered this into TurboTax, correct?

Re: Traditional IRA basis reporting

kathy1000 — Fri, 07 Feb 2025 17:31:43 GMT

Ok, I will put the total in this year. I'll have to pull out my 2000, and 2017 returns to see if I did report the rollovers, yikes. What if I did not?

And THANK YOU so much for the responses.

Re: Traditional IRA basis reporting

DanaB27 — Fri, 07 Feb 2025 18:40:55 GMT

Rollovers are not taxable but when you receive Form 1099-R for the rollover then they should be entered on your tax return.