Ira withdrawal

Forum|Forum|1 year ago
April 4, 2025
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Greetings. I had a group of 6 simple IRA withdrawals in 2024. Two were rollovers. 4 were simple distributions. So the total of my 'taxable' withdrawals on Line 4b of the 1040 should be the total of the 4 simple withdrawals. The TT calculation is coming up $4,500 short of my calculation. Thought transposition error but I verified all data entry and all 1099R's have been correctly entered. Has anyone else had issues with this? Maybe a glitch in the programming? TIA

Update after looking at the worksheet for 1099R summary on line 40 it is showing non-taxable IRA distributions for sales tax deduction in the amount of $4,500. I'm not sure where that's coming from because everything should be taxable?

DanaB27

To clarify, did you make nondeductible contributions to your Traditional IRA in the past? If yes then part of your distribution will be nontaxable. The taxable part is calculated on Form 8606.

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Cindy77Author

thank you for responding. I believe i did make taxable contributions at some point over the 40ish years that have passed since i started my ira. I don't have records going that far back. i don't even think the form 8606 existed. i have never filed an 8606 as i was never prompted as long as i've been using turbo tax. so when they are calculating my withdrawal 'non taxable' reduction, I'm not sure what they're using. apparently basic charts. how accurate is it? i suppose the risk of using it is that i may be double paying taxes on any non deductible contributions. I'm thinking do i need to reconstruct the years of contributions which would require requesting old t/r's and maybe investment accounts? Or should i simply accept what 8606 calculates? tia

SusanY1

Do any of your 1099s have information in Box 5? It could come from there as well. Also, if you imported the forms you may want to delete them and re-enter manually.

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