Question

Form 8606

Forum|Forum|4 years ago
April 5, 2022
1 reply
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In 2021 I received a distribution from a non-inherited, nondeductible traditional IRA. How do I report this on TT - I don't see how to fill out Form 8606, and I don't want to have to fill it out manually and mail it with my tax return.

M

MAK70

After you enter your 1099-R, you must go through the questions about qualified disaster distributions, and you will see the question about nondeductible contributions (see below)- this is where you enter the information for the 8606.

Form 8606 to report:

Nondeductible contributions you made to traditional IRAs.
Distributions from traditional, SEP, or SIMPLE IRAs, if you have ever made nondeductible contributions to traditional IRAs.
Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.
Distributions from Roth IRAs.

R

rkl1Author

I followed your instructions but after the question about disaster distributions there are no questions about nondeductible contributions so TT shows the entire distribution as taxable. The contributions were nondeductible and should therefor not be subject to taxation. Also, this distribution was not a RMD because the required RMD was taken from a different IRA (rolled over from a 401K) so how do I avoid the 50% additional tax?

R

RaifH

Is the IRA box checked on this 1099-R in Box 7? The question about nondeductible contributions does not come up if TurboTax thinks the distribution is from a 401(k).

You will not be penalized for not taking the RMD if you indicate on the other distribution that you took the entire RMD. You can indicate the entire distribution or just a portion of it met the required minimum distribution.