1040-US: Data entry for client who received a distribution from a traditional IRA and also made a nondeductible contribution in the prior-year to a traditional IRA in the current year

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MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to access the electronic filing transmission feature in CS Connect.

Thomson Reuters is committed to proactively evolving our security features to help you protect your firm and your clients' data. For more information about multi-factor authentication, see Multi-factor authentication overview.

Question

I have a client who received a distribution from a traditional IRA and also made a nondeductible 2017 contribution to a traditional IRA in 2018. How do I enter this in order to have Form 8606 calculate correctly?

Answer

In Screen 1099R, enter the total distribution amount in the Gross distribution and Taxable amount fields. Enter the applicable distribution code in the Distributions code field, and enter X in the IRA/SEP/SIMPLE field.

In Screen IRA, enter amounts in the following fields: Traditional IRA contribution, Designated nondeductible contributions, Traditional IRA basis, and Designated nondeductible contribution made in 2018 for 2017.

Related topic: Individual retirement account FAQs (1040)

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