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February 9, 2020
Question

This year TurboTax is asking me to enter the total of all my Traditional IRAs from Form 5498 but not Roth IRAs yet Online Support says we don't have to. My question is what about Rollover IRAs--are they considered Traditional IRAs and do I really nee

  • February 9, 2020
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    Employee
    February 10, 2020

    Rollover IRAs are traditional IRAs.

     

    If TurboTax asks for your balance in traditional IRAs you must enter it; TurboTax only asks for your year-end balance in traditional IRAs if it's information necessary to prepare your tax return accurately.  If you fail to enter it you will either end up under-reporting income from traditional IRA distributions or under-paying penalties on excess traditional IRA contributions.

     

    If TurboTax asks for your year-end balance in Roth IRAs, you must enter it, otherwise you will end up under-reporting the penalty on excess Roth IRA contributions.