Non-deductible traditional IRA modeling - how to enter existing IRA balance?


I saw and was able to understand the previous tip from 2014 on how to model non-deductible IRAs future contributions in the special expenditures and special receipts tab. My feeble mind is having trouble figuring out best way to model an existing non-deductible traditional IRA balance. In my example, have one 3-year old traditional non-deductible IRA with after-tax contributions of $5500/year = $16,500, plus tax-deferred income of $1854 for total current balance of $18,354. Any additional tips or clarity from more advanced users on best way to enter this would be most appreciated.


dan royer's picture

The reference here is to this question on non deductible IRA

I probably don't know all the tax rules (age may have an impact), but in short, you can just enter any receipts from these existing non-deductible IRA as either taxable or non-taxable receipts. Maybe the question is really for an accountant. If the $1,854 is is taxable on withdrawal, enter it is as a taxable special receipt. The rules discussed here for example seem complex to me so I'm hesitant to say what gets taxed and what doesn't. But if you know what is taxed and not taxed on withdrawals, just enter those as special receipts with the appropriate tax consequences.

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