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1040 Form 8606 Worksheet 1-5 from IRS Publication 590 in Lacerte
by Intuit• Updated 1 week ago
How to generate the publication 590 Worksheet 1-5 in Lacerte when a taxpayer has a Traditional IRA distribution that has been rolled over to a Roth IRA and a Traditional IRA contribution?
Solution
Per the Publication 590 if a taxpayer has both a distribution and a contribution they will need to complete Worksheet 1-5 to figure the taxable portion of the distribution. To generate Worksheet 1-5 in Lacerte:
- Go to Screen 13.1 Pensions, IRAs.
- Enter the Distribution code(s) (input codes 196 and 810) from the 1099-R.
- Check the box IRA/SEP/SIMPLE (input code 2).
- Enter the Gross Distribution (input code 3).
- Scroll down to the Form 8606 section.
- Enter the Value of IRA in Value of all traditional/SEP/SIMPLE IRAs at 12/31/20YY (plus outstanding rollovers) (-1=none) (input code 34).
- Under Conversion to Roth IRA enter the portion of the distribution that was converted to a Roth IRA in Traditional/SEP/SIMPLE IRA distributions converted to Roth IRA (input code 138).
- Go to Screen 24 Adjustments to Income.
- Enter the amount of IRA contribution in IRA contributions (1=maximum deduction) (input code 1).
- Enter the amount of basis in both input fields IRA basis for 20YY and earlier year (input code 6) and Basis in IRA as of 12/31/20YY (input code 21). Both inputs are necessary for worksheet.
- Make sure there is another source of income with a qualified retirement plan, for example if the taxpayer has a W-2, the Retirement plan box must be checked on screen 10.
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