@dmertz thank you. ... View more

@dmertz For 2017 tax return I entered into TurboTax the total of non-deductible amounts from my 8606 forms.  For next year's (2018) tax return what do I do please? ... View more

@dmertz I am grateful for your helping me out with your expertise and time.  To me the IRS documents are often complex and not to the point, but you explain things clearly in a way that I can understand.  Thank you. ... View more

@dmertz Thank you so much for your time and expertise.  I have learned a lot from you.  I have a new question: how can IRS determine by looking at a 1099-R whether it is a RMD distribution or a normal distribution?  My 1099-R for RMD has code '7' in Box 7 but '7' is also for normal distribution.  In other words if John took $1,000 himself from his Traditional IRA account (not RMD), he gets a 1099-R with code '7'.  If Jane's brokerage did RMD distribution $1,000 from her Traditional IRA account in the same year and she gets her 1099-R with code '7', does her 1099-R look exactly the same everywhere as John's 1099-R?  I have set up with my brokerage firm which will calculate and do RMD distribution for me every year. ... View more

@dmertz I am very sorry that I did not say it clearly in the 2 questions I posted last.  These two questions were both on TAX which I need to pay before 4/17/18.  The brokerage firm already calculated RMDs and did the distributions on 401(k) A as well as 401(k) B (after distribution, 401(k) B was rolled over to Traditional IRA).  Before rollover I had no Traditional IRA.  I would like to use your method above which had an example of $190,000 2017 year-end balance, to calculate my taxes.  What I was not (and still am not) sure, is which DATE do I use for 2017 year-end balance on 401(k) A distribution, and which DATE do I use for 2017 year-end balance on 401(k) B distribution.  Thank you for your help. ... View more

@dmertz I have two questions as I'd like to make sure I do RMD tax correctly. (1) To calculate tax on 401(k) RMD (account A as described above), do I use 12/31/2017 401(k) A balance?  Or use the RMD distribution date?  I still have 401(k) A today. (2) To calculate tax on 401(k) (account B), do I use 12/31/2017 traditional IRA balance as 401(k) B was rolled over to traditional IRA *after* the distribution?   Just want to make sure.  Thank you so much for your help. ... View more

@dmertz I had two 401(k) accounts A and B from two companies and no IRA account on 1/1/2017.  Later in February the RMD distributions occurred on both 401(k) accounts.  Then 401(k) B rolled  over to a traditional IRA in May.  To use your method above which had an example of $190,000 2017 year-end balance, do I use 12/31/2017 balance of 401(k) A, and use 12/31/2017 balance of traditional IRA (which came from 401(k) B rollover)?   And are there any other things I need to know to correctly report tax?   I thought my basis in nondeductible traditional IRA contributions should not change after the above rollover.  I thought the total of such contributions should still be a simple mathematical addition, i.e. adding up the amount in each past year's 8606 forms.  is this not correct?  Thank you. ... View more

@dmertz Thank you for your answer containing useful information on 401(k) and traditional IRA.  I am still not clear about the dates used for the calculation of taxable amount regarding Traditional IRA.  In the case of distribution occurring on 15Feb2017 on Traditional IRA, I think the brokerage used the traditional IRA balance of 12/31/2016 to calculate the distribution amount according to IRS "Required Minimum Distribution Worksheet".  However to calculate taxable amount for 2017 tax return I apply the balance of 12/31/2017 when using your method above which had an example of $190,000 2017 year-end balance?  12/31/2016 balance and 12/31/2017 balance can be very different while both balances are for the same distribution. ... View more

@dmertz I have a question about using 2017 year-end balance to calculate the tax.  Why not using the Traditional IRA and 401(k) balance on the day the brokerage firm takes the distribution amount from the  balance?  A brokerage customer in 2017 had the RMD the first time so he asked his brokerage firm to do RMD distribution in early 2017 (15Feb2017).  The brokerage said they applied an IRS formula to calculate the distribution based on the balance on 15Feb2017, which would be very different than the year-end balance.  I have difficulties reading and understanding the IRS web link you provided.  Thank you. ... View more