nondeductible IRA code 2 to ROTH - how

[WITAXLADY]

do I get the 8606 to show as non taxable - I cannot seem to get the form to work or anything else  - shows as taxable transaction - no IRA credit given at the time, so no payback now - how do I tell ATX that??/

thx d

[Gail in Virginia]

Have you been doing th e8606 every year to show the basis and the total balance in the IRA's?  Part of this is going to be taxable because you have to withdraw taxable (earnings, deductible contributions) pro rata  with the non-deductible amounts withdrawn.  In other words, you can't withdraw only the non-deductible contributions from a traditional IRA and then withdraw the earnings later.  But the 8606 is the form that should calculate the amount that is a return of basis and therefore non-taxable.  Did you complete Part I before you completed Part II?

[WITAXLADY]

yes, yes,  from what I can tell - the lines are not calculating and carrying over - line 5 does not add up Thank you

line 16, 17 as non taxable does not carry to 1040 line 4 as non taxable and calls it taxable - so I sent an email to ATX - between here and that - maybe it can be fixed?

 

I did for now line 36 subtraction to get numbers!