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Author: redhed Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121564  
Subject: Nondeductible IRA Contributions? Date: 2/23/2003 7:41 PM
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HELP!! I'm in the process of doing my taxes on TurboTax and have run across a question I'm not sure about.

In 2002, I did some conversions from funds in my Traditional IRA over to my Roth account. In doing my 2002 taxes, it asks for the cost basis of my Traditional IRA AND the amount it was worth on December 31, 2002 (the difference being a drop of about $10,000). However, this only applies if this was a "nondeductible IRA contribution". The funds in the Traditional IRA were a direct transfer from a 401k (due to divorce) and, as such, I did not take an IRA deduction for it. Therefore, I'm thinking this qualifies as a nondeductible IRA contribution. Am I right?

The difference in value means a huge difference in the amount of taxes due, so I hope it works out in my favor. But, I don't want to do anything wrong when claiming it on my taxes. What to do??

Any and all help would be appreciated.


regards, redhed
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