After you finish entering all your 1099-R information, click Done on the 1099-R Summary screen.
You'll click past screens asking about disaster distributions, then a screen titled "[name's] Traditional IRAs". This screen asks about non-deductible contributions reported on Form 8606 in prior years. Click Yes, then Continue. On the next screen you will be prompted to enter the total basis of all your traditional IRA accounts at 12/31/24. Enter the basis amount, then click Continue. You will then also need the total value of all your IRA accounts as of 12/31/25. These values are reported on a Form 5498, but those forms are typically not issued until May because it is still possible to make contributions to an IRA up to the April 15th filing deadline. This may take a little research and a few phone calls to the custodian of your IRA(s) to get this information.
Bear in mind that the total basis is for the total value of the IRA accounts, not the account that has a basis. As an example:
- You have two traditional IRA accounts:
- One has a value on 12/31/25 of $140,000 and has no basis
- The other has a value on 12/31/25 of $50,000 and has a basis of $10,000.
- Merely converting $10,000 to a Roth from the account with $50,000 doesn't mean that the entire amount of the conversion will be tax free.
- The basis of $10,000 will be divided by the total value of the accounts ($140,000+$50,000) and the amount of the conversion - $10,000 to get a fraction = 10,000/200,000 = 0.05
- This fraction will be multiplied by the amount of the conversion - $10,000 x 0.05 - to get the tax free conversion amount of $500
- Your new basis in the account will be the original $10,000 less the tax free conversion of $500 to arrive at $9,500 basis for 2025,
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
