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April 9, 2025
Question

I took a distribution from an after tax IRA, so I only owe tax on the gains, but the financial institution didn't adjust for that on the 1099-R. How do I handle this?

  • April 9, 2025
  • 1 reply
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    1 reply

    April 9, 2025

    If it is a traditional IRA, you will need to enter the nondeductible contributions (it is a follow-up question to your 1099-R entry).  If it was a Roth IRA, there are a few questions to categorize it as a qualified distribution and nontaxable (once again, go through all of the questions after the 1099-R entry carefully).

    fanfare
    Employee
    April 9, 2025

    Your after tax IRA basis is recorded on the Form 8606 you filed with IRS.

     

    Without it, your distributions are all taxable income.

     

    @barbara-stefl