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Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
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Taxpayer has made non-deductible traditional IRA contributions

Resolved Question:

Taxpayer has made non-deductible traditional IRA contributions while participating in employer's 401(k) plan. Taxpayer is over 59.5 & has taken a distribution of entire IRA account balance in 2011. I believe distribution is non-taxable, however the financial institution that IRA is invested with does not know how much is taxable vs non-taxable.
If 1099R indicates taxable amt not determined, how do I ensure the taxpayer's contributions do not appear as income on his 1040.
Submitted: 5 years ago.
Category: Tax
Expert:  Jax Tax replied 5 years ago.

Jax Tax : You have to self report the basis in the IRA. This is the amount paid post tax that did not qualify as an adjustment to income.
Jax Tax : Form 8606 is used to report the non taxable basis.
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