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March 8, 2025
Question

Total Basis in traditional IRA

  • March 8, 2025
  • 1 reply
  • 0 views

Last year I converted some IRA accounts to Roth IRAs. All 1099-R forms had the same amounts in box 1 and box 2a (taxable amount).

I found that TurboTax filled in form 8606 and entered $2400 in Line 2 (total basis in traditional IRA), which was then used to reduce the Gross distribution. Form 1040 now shows line 4b lower than 4a by $2400.

We are both retired and not working and we are not contributing to any IRA.

Where does the Line 2 entry come from? 

Do I need to delete form 8606?

 

Thanks for any suggestions.

    1 reply

    fanfare
    Employee
    March 8, 2025

    if you made the max IRA contribution, but your AGI is/was in the phase-out range, some will be non-deductible and that amount is shown on Form 8606.

     

    @hzschw 

    What is the last year you made a Traditional IRA contribution?

    hzschwAuthor
    March 8, 2025

    I don't remember, probably over 10 years ago or more.

    fanfare
    Employee
    March 9, 2025

    although it sometimes can get lost, it sounds like TurboTax was able to retain your IRA history up until now.

     

    @hzschw