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January 23, 2025
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Should line 4 on the Taxable IRA Distribution Worksheet include the end of year amounts from both my Traditional IRA and my Rollover IRA accounts?

  • January 23, 2025
  • 1 reply
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The reason for the question is that Turbotax for line 4 on the worksheet says to "Enter the value of all your traditional IRA(s) ..." My Rollover IRA account was created when I left a company and my 401K was "rolled over" to this account. I have put in my Traditional IRA value and it calculates a different Line 13c Taxable portion value than if I enter both the Traditional account value and the Rollover account value.
    Best answer by dmertz

    Your rollover IRA is a traditional IRA and must be included when asked for the year-end total value of your traditional IRAs.  When you have basis in nondeductible traditional IRA contributions, this year-end value is needed to calculate on Form 8606 Part I the taxable amount of a traditional IRA distribution.

    1 reply

    dmertzAnswer
    Employee
    January 24, 2025

    Your rollover IRA is a traditional IRA and must be included when asked for the year-end total value of your traditional IRAs.  When you have basis in nondeductible traditional IRA contributions, this year-end value is needed to calculate on Form 8606 Part I the taxable amount of a traditional IRA distribution.