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I deposited over $1800.00 in an IRA account starting in

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2002. At that time I...
I deposited over $1800.00 in an IRA account starting in 2002. At that time I had started a new job with a new company. I found out in late 2002 that my IRA contributions could not be deducted from income because the company offers a 401k, to which I would be eligible to participate. I have now closed out the account and received the proceeds in 2016. When i file my 2016 return, how do I show the distribution as 'non-taxable?'
Submitted: 2 years ago.Category: Tax
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Answered in 4 minutes by:
2/17/2016
Tax Professional: Lev, Tax Advisor replied 2 years ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,981
Experience: Taxes, Immigration, Labor Relations
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there will be two step verification.
1. If you contributed into the traditional IRA in 2002 and did not deduct that contribution - you woudl need to file form 8606 with that tax return reporting nondeductible IRA contribution. If that form was not filed - you woudl need to amend that tax return and add the form.

2. As you received distribution in 2016 - most likely the administrator will report total amount of distribution as taxable on form 1099R.
You woudl need to determine a nontaxable portion and report the total distribution on form 1040 line 15a, and taxable portion on line 15b.

Let me know if you need any help with reporting.

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Customer reply replied 2 years ago
Thank you. this is what i needed.
Tax Professional: Lev, Tax Advisor replied 2 years ago

I appreciate if you take a moment to rate the answer.
Experts are ONLY credited when answers are rated positively.
If you still have any doubts, need clarification - please be sure to ask.
I am here to help you with all tax related issues.

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