topic Total basis for IRA reporting in Retirement tax questions

Total basis for IRA reporting

yatoshura — Mon, 24 Mar 2025 02:56:45 GMT

When I was filling out my non-deductible traditional IRA contribution, TurboTax asked about total IRA basis amount.

Where do I find this amount? Is this simply my total traditional IRA balance from all past years including 2024?

It also asked the same question for Roth IRA.

Re: Total basis for IRA reporting

fanfare — Mon, 24 Mar 2025 04:16:46 GMT

TorboTax wants your prior years basis.

Get this from your most recently filed Form 8606 Line 14,

If none, enter -0-.

@yatoshura

Re: Total basis for IRA reporting

yatoshura — Tue, 25 Mar 2025 01:24:40 GMT

@fanfare

I did not have any IRA contribution in 2023 so that total basis is not in that form. However, I recalled contribution to traditional IRA in 2022 and 2021. So do I just add up those balances or just use the basis from 2022?

Re: Total basis for IRA reporting

fanfare — Tue, 25 Mar 2025 02:09:43 GMT

Your most recently filed form with IRS shows the total of all non-deductible amounts still in the IRA.

It is prior years basis.

not prior year's basis.

If you added basis in 2024, your 2024 Form will report the increment.

@yatoshura

Re: Total basis for IRA reporting

yatoshura — Fri, 04 Apr 2025 03:49:19 GMT

@fanfare

I have not made any traditional IRA contributions since 2021. I looked back at all my tax filings 1040 forms for 2022 and 2023 and I did not find any form 8606. However, I found a form 8606 with my 2021 1040 filing which has a total basis on line 14. Should I just use this 2021 total basis?

Re: Total basis for IRA reporting

fanfare — Fri, 04 Apr 2025 03:53:48 GMT

That's how it works.

@yatoshura

IRS wants you to keep all Forms 8606 until the IRA is emptied.

Re: Total basis for IRA reporting

yatoshura — Sat, 05 Apr 2025 02:56:45 GMT

@fanfare

How about for years when I did not contribute to any IRA? Do I still need to continue reporting past total basis from 2021 every time I file a 1040 each year?

Re: Total basis for IRA reporting

DanaB27 — Sat, 05 Apr 2025 17:00:55 GMT

No you do not need file Form 8606 for years where you did not make nondeductible Traditional IRA contributions. Please see Who Must File Form 8606 for details when to file Form 8606. As fanfare mentioned please make sure you keep your prior filed Forms 8606 until your IRA is empty.