Re: Form 1099-R and IRA Basis

"D.D. Pallmer" <ddpalmer@xxxxxxxxxxx> wrote:

> In 2005 my father turned age 70 1/2 and began to take the minimum
> distribution from his IRA. The IRA was accumulated from about 1982 to
> 1995. The early years were tax deductible contributions while the later
> years he was not eligible to make tax deductible contributions. So From
> 1986 on he filed form 8606 showing his basis.
>
> The RMD that came from his IRA company (an insurance company) does NOT
> have the boxed checked for "Taxable amount not determined". So Turbotax,
> for instance, assumes that the contribution is 100% taxable. If I check
> that box in Turbotax (although the IRS won't get the information as
> "Taxable Amount Not Determined"), I can do the calculation while causes
> only part of the distribution to be taxable.
>
> I know if I contact the IRA (insurance company) company, they'll say that
> they don't know which part of the IRA was deductible along the way and
> which was funded with non-deductible IRA dollars. And they are
> correct...this is information that they do not have.
>
> What do we do here on dad's tax return?

Follow the instructions. You use Part I of Form 8606 to calculate the
taxable portion. If that doesn't prompt TT to put the correct numbers on
line 15, try checking the "not determined" box on your 1099-R input form.
No, that's not falsifying anything.

If that doesn't work, override 15b, remembering that if you don't know what
the numbers should be on a return you shouldn't use software, and if you
don't know how to override entries, you're serving the software rather than
vice-versa.
--
Phil Marti
Clarksburg, MD


.

Relevant Pages

  • Form 1099-R and IRA Basis
    ... The early years were tax deductible contributions while the later years he ... The RMD that came from his IRA company (an insurance company) does NOT have ... in Turbotax (although the IRS won't get the information as "Taxable Amount ...
    (misc.taxes)
  • Re: IRA Rollover Question
    ... both an early distribution (if the actual distribution is not _itself_ ... rolled over within 60 days) which could result in the loss of the IRA, ... mentioned there - it is not wise to get tax advice from a banker. ... that means the exact same funds that are received don't have to be ...
    (misc.taxes)
  • Re: how to compare living standards
    ... As a general rule, your estate should be the beneficiary of your IRA, ... you must pay income tax as ... I plan to take the minimum distribution required by the IRS (since I will ...
    (sci.econ)
  • Re: Traditional IRA Distribution in 2005
    ... the amount 'earned' should be the full amount ... > $5,000, and there were no contributions to this ira for the 2005 year. ... distribution of previously untaxed earned income. ... custodian. ...
    (misc.taxes)
  • Re: IRA excess contribution
    ... legitimate IRA contribution AND NOT an excess contribution subject to any ... have to pay taxes on the entire distribution. ... is being taxed twice. ...
    (misc.taxes)