How to answer questions related to Form 8606

[user17712012540]

I need clarification on how to answer this question in Turbotax related to IRA.  I do a backdoor Roth IRA each year so should the answer be No?

Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?

Nondeductible contributions are tracked on Form 8606 in your prior year returns.

[AnnetteB6]

If you use your Traditional IRA account only as a means to make a non-deductible contribution which is then converted to a Roth IRA, and you have no other Traditional IRA accounts that have any after-tax contributions remaining in those accounts, then you would answer 'no'.

The reason for the question is that whenever a distribution is taken from a Traditional IRA, it is considered to be a mixture of pre-tax and after-tax money from the total of all of your Traditional IRA accounts (if you have more than one account).  Therefore, the total basis in any Traditional IRA account that you have is required information to determine whether the distribution is taxable or partially non-taxable.