Thread: IRA Distribution

I know someone who is using Turbo Tax Deluxe to file a tax return. He has withdrawn $50K from his traditional IRA at age 61. A part is non-deductible when he contributed (say 10K for his 100K account). How to enter 5K (= 10K * 50/100) as the return of principle that should not be taxed.

Is 8606 the right form?

Thanks!

Originally Posted by bizark

I know someone who is using Turbo Tax Deluxe to file a tax return. He has withdrawn $50K from his traditional IRA at age 61. A part is non-deductible when he contributed (say 10K for his 100K account). How to enter 5K (= 10K * 50/100) as the return of principle that should not be taxed.

Is 8606 the right form?

Thanks!

The bank that managed the IRA account will provide him (and the IRS) with the information needed to separate the principle from the accumulated capital gains and interest earnings.
Werner Reisacher