IRA Basis

Forum|Forum|1 year ago
February 18, 2025
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TurboTax has not deducted IRA Basis from 1040 IRA distributions, line 4a and 4b, to get taxable amount. How can I fix that?

TurboTax Home & Biz Windows

DavidD66

Can you clarify please. What form are you referring to with 4a and 4b?

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NormVisteAuthor

As I said, 1040.

DavidD66

You don't deduct the basis in an IRA to get to the taxable amount. A distribution from an IRA that has both pre-tax and after tax contributions is a combination of both. For instance, if you had an IRA with $20,000 of after-tax contributions (basis) and $80,000 of pre-tax contributions and gains, then a distribution from the account would be 20% basis and not taxable, and the other 80% would be taxable. The ratio is calculated as of December 31 of the year prior to the distribution. This is calculated on Form 8606.

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