Form 8606 for Non-Deductible IRA

[exotishare]

This is my first time to file form 8606 for the non-deductible IRA. How do I submit the IRA contribution from Form 5498, and will form 8606 automatically populate?  Thank you for your assistance.

[MindyB · Accepted solution]

In order to direct contributions to be non-deductible and populate Form 8606, you need to indicate this in the IRA entry screen.

Here's how to do this in TurboTax Online:

1. Navigate to Federal > Deductions & Credits > Retirement and Investments>  Traditional IRA and Roth IRA > Revisit
2. Continue through interview again, when you are asked Is This a Repayment of a Retirement Distribution? screen, select No.
3. On the Tell Us How Much You Contributed screen, enter the amount and select Continue.
4. On the Did You Change Your Mind? screen, select No, then answer the questions on the following screens.
5. When you reach the Choose Not to Deduct IRA Contributions screen:
   1. Select Yes, make part of my IRA contribution nondeductible.
   2. Enter the amount
   3. Select Continue.
      1. Note, if your income is too high, it will automatically make them nondeductible and you don't need to follow step 5.

[exotishare]

@MindyB Thank you Mindy, this is perfect!

[Toni C]

What about if I am using Turbo Tax Premier?  I tried the steps you suggested for On-line, and I didn't get the same screens.

[DanaB27]

The screen will be the same in TurboTax Online if your IRA contributions are deductible, you get the option to make it nondeductible as MindyB shared above. But if you have a retirement plan at work and are over the income limit it will be nondeductible automatically. You will only get a warning that your income is too high to deduct the Traditional IRA contribution and then a screen saying $0 is deductible. Therefore, you will not see the “Choose Not to Deduct IRA Contributions” screen.

@Toni C