Question from turbo tax on IRA balance at end of year? Form 8606.

[faaradar]

Turbo Tax asked me my year end balance of traditional ira account after I entered a distribution 1099R for money I converted to a Roth IRA from Traditional. It mentioned form 5948 should have end of year balance that is provided by the ira company.

My question is I have a traditional IRA with Vanguard that I was actually taking the distribution from that year (1099R provided) that I know the balance for. But I also have a larger TSP Federal retirement account with Traditional IRA contributions in it. Does turbo tax want the amount of all my IRA accounts combined? I also saw somewhere on other question that a 401k is not an IRA, I assume my TSP account is a IRA? I am 62 years old.

Thanks for any clarification on how to respond correctly to this question in turbo tax for year end IRA balance.

[DanaB27]

No, a TSP isn't an IRA. Therefore, you would not add this balance when TurboTax askes about the value of all of your traditional, SEP, and SIMPLE IRAs.

[faaradar]

Thanks. Do you know if I will need to start keeping records on my IRA withdraws , conversions to Roth and balances for several years? This was my first year taking a withdraw and conversion to Roth so just wanting to know what may be needed in the future.

[DanaB27]

TurboTax will track the Traditional basis, Roth contribution basis, and conversions on the IRA Information sheet. If you use TurboTax next year again this will be carried forward to the 2025 return.

But generally it will be a good idea to save the IRA Information sheet for your records.