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In Proconnect Tax, where can you enter the fair market value of a traditional IRA account so that this number flows to line 6 of Form 8606, Part I? Client made a nondeductible traditional IRA contribution, so we are filing Form 8606.
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Income > Pensions, IRAs (1099-R)> look for some tabs across the top and find Form 8606,
Answers are easy. Questions are hard!
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I've tried multiple inputs and nothing will get the fair market value to flow to the 8606 and show up on the 8606 form. Line 6 shows zero no matter what amount I enter, which is incorrect.
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Did they actually take an IRA distribution and have IRA basis and the FMV is needed to compute the taxable amount?
Or do you just want the FMV to appear there?
The more I know the more I don’t know.
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There's no distribution. It's only a nondeductible IRA contribution that does have basis, and the instructions for Form 8606 say to report the fair market value on line 6 of the 8606, but it looks like Proconnect is set up to only report FMV if it affects the calculation for a taxable amount, so I guess I have to file without showing FMV on line 6.
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Guess I never noticed that part of the instructions.
The more I know the more I don’t know.