nolanm
Level 4

Hi thanks for the help

Regular IRA. Client tells me she contributed post tax 6 years ago. There was no 401k at her employer so set up personally with Ameriprise. In 2023 she ask for a full distribution. 1099-R was generated and 10% Federal and State tax was withheld. 1099-R shows $5k in box 1, and box 3 (taxable amount) but box 2b is checked as taxable amount not determined.

Have a separate form 5498 from 2022  that shows fair market value end 2022 at $4800. I think my error is that I entered this $4800 as basis for 2022 in the IRA info worksheet which is why only $200 was flowing through to the 1040 as taxable. Fair market value from the 5498 from 2022 should just be ignored correct? If I omit this basis the full $5k is taxable which makes more sense?