topic When I enter the Fair Market value of my IRA as requested in Turbo Tax, my refund is reduced. Does the Fair Market value of a traditional IRA affect tax? in Retirement tax questions

When I enter the Fair Market value of my IRA as requested in Turbo Tax, my refund is reduced. Does the Fair Market value of a traditional IRA affect tax?

santa-fe-trail — Sat, 01 Jun 2019 20:37:16 GMT

yes there are several such scenarios and that is why they...

fanfare — Sat, 01 Jun 2019 20:37:16 GMT

yes there are several such scenarios and that is why they ask for it.

There are two different places in TurboTax where it asks...

dmertz — Sat, 01 Jun 2019 20:37:19 GMT

There are two different places in TurboTax where it asks for you year-en value in traditional IRAs. The most common reason that the FMV affects your tax liability is when you have made a distribution or Roth conversion from a traditional IRA and you have basis in nondeductible traditional IRA contributions shown on Form 8606. Your year-end balance affects the taxable and nontaxable proportions of the distribution; a higher year-end balance means that more of your distribution is taxable. (TurboTax assumes that your year-end balance is zero until you enter it.)

The second place that TurboTax needs to know your year-end balance is if you made an excess contribution to your traditional IRAs. The 6% excess contribution penalty is calculated on the amount of the excess or your year-end balance, whichever is less.

It probably means that you have not takes sufficient dis...

pk — Sat, 01 Jun 2019 20:37:21 GMT

It probably means that you have not takes sufficient distribution to satisfy the RMD -- the penalty is pretty high. Is this your situation ?