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April 6, 2025
Question

RMD from a traditional IRA which includes nondeductible contributions

  • April 6, 2025
  • 1 reply
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I took my first RMD distribution in 2024 from my traditional IRA.  A portion of the entire IRA contributions were nondeductible and taxes were payed on them.  During those years I filled out Form 8606.  How do I account for this now? 

    1 reply

    April 6, 2025

    You will need to enter your basis from your last filed Form 8606 during the follow-up questions:

     

    1. Click on "Search" on the top right and type “1099-R”  
    2. Click on “Jump to 1099-R”
    3. Click "Continue" and enter the information from your 1099-R
    4. Answer questions until you get to “Tell us if you moved the money through a rollover or conversion" screen and choose “I converted some or all of it to a Roth IRA
    5. On the "Here's your 1099-R info"/"Your 1099-R Entries" screen click "Continue"
    6. Answer "Yes" to "Any nondeductible Contributions to your IRA?" if you had any nondeductible contributions in prior years.
    7. Answer the questions about the basis from line 14 of your last filed Form 8606 and the value of all traditional, SEP, and SIMPLE IRAs

     

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