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

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

Change to CS Support service hours

Our Support department is closed on [[date]]. However, limited UltraTax CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline.

Links to our most popular tax processing topics are available in the Alerts and notices section on the right side of most pages.

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)

Share This