When calculating how much an IRA conversion to Roth is taxable, Turbotax asks the value of Traditional IRA, SEP and SIMPLE IRAs. What about other retirement accounts?

Forum|Forum|2 years ago
February 29, 2024
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I have a combination of nondeductible traditional IRAs, deductible SEP IRAs and rollover IRAs from employee sponsored plans from prior employment. Are the value of any of the rollover IRAs included in the total value or only traditional, SEP and SIMPLE IRAs? I converted from a prior employee sponsored plan and not a traditional IRA. I'm not sure why they only list the three (traditional, SEP and SIMPLE). My traditional IRAs are nondeductible (contributed in addition to employer sponsored plan) while the SEP contributions are deductible (currently self-employed contractor).

TurboTax Online

Best answer by dmertz

Rollover IRAs are traditional IRAs and must be included in the total value of your traditional IRAs reported on line 6 of Form 8606. SEP and SIMPLE IRAs are also types of traditional IRAs.

Traditional IRAs themselves are not deductible or nondeductible. Basis in nondeductible traditional IRAs belongs to you, not to any particular one of your traditional IRAs.

dmertzAnswer

Employee

Rollover IRAs are traditional IRAs and must be included in the total value of your traditional IRAs reported on line 6 of Form 8606. SEP and SIMPLE IRAs are also types of traditional IRAs.

Traditional IRAs themselves are not deductible or nondeductible. Basis in nondeductible traditional IRAs belongs to you, not to any particular one of your traditional IRAs.

pmazzara1Author

Thank you for the response. So all IRAs, whether deductible or not should be included. Are there any retirement account values that should not be included on this line?

dmertz

Employee

Only the various types of traditional IRAs are to be included, not Roth IRAs, not 401(k)s, not 403(b)s, not 457(b)s, not the federal TSP and not any inherited IRAs maintained as beneficiary IRAs.