Form 1099-R - Entering Basis of Nonqualified Distributions

Below, please find the procedure for entering the basis of your nonqualified Roth IRA distributions. To get Line 19 of Form 8606 Nondeductible IRAs to calculate properly, follow the instructions below.

To enter Form 1099-R (Distributions from Retirement Plans) into the program:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal.
  2. Click Retirement Plan Income in the Federal Quick Q&A Topics menu to expand, then click IRA, 401(k), and pension plan distributions (Form 1099-R).
  3. Click + Add Form 1099-R to create a new copy of the form or click Edit to review a form already created.
  4. Click Quick Entry to scroll down to answer all applicable questions or click Step-by-Step Guidance to proceed.
  5. On the screen titled Retirement Plan Income - Distribution Amount, enter the 1. Gross distribution and 2a. Taxable amount distribution amounts, check 2b. Taxable amount not determined, then click Continue.
  6. On the screen titled Retirement Plan Income - Box 7, select from the 7. Distribution code drop-down, select a code from the 7. Distribution code (if necessary) drop-down, if needed, then click Continue.
  7. On the screen titled Roth IRA Distributions - Basis, enter the Basis in Roth IRA contributions amount of your Roth IRA contributions made in previous years, then click Continue.

Note. If the correct codes were selected, the screen titled Roth IRA Distributions - Basis should appear. If not, go back and make the correct selections.

Line 4b should now have the correct amount as taxable.

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed.