topic 1099R IRA Distribution in Retirement tax questions

1099R IRA Distribution

jpcard6192 — Fri, 28 Mar 2025 13:25:25 GMT

I'm entering a 1099R form into ProSeries that I know is taxable income to the taxpayer. Proseries treats it as taxable until I check off the IRA box on the form - then it treats the distribution as non-taxable? Has anyone else come across this issue? I have several other clients that I have had no problem with, but this one is driving me crazy!

Re: 1099R IRA Distribution

dmertz — Fri, 28 Mar 2025 13:50:01 GMT

The result implies that the individual has basis in nondeductible traditional IRA contributions and that the individual's year-end balance in traditional IRAs is zero or has not been entered, resulting in the calculation on Form 8606 Part I showing that $0 of the distribution is taxable. Check the information regarding the basis and year-end value of traditional IRAs.