IRA Deductible and NonDeductible

[neallove]

Client is 78 years old

In prior year he had deductible IRA's of 25,000 and 60,000 of non deductible IRA's.

He had the money invested in two funds at an investment firm and somewhere along the line the investment firm combined the two funds.

The clients has been receiving distributions for a few years and the 1099 shows all as taxable.

What to do?

[David1980]

They should have checked the "taxable amount not determined" box as the investment co has no way to know if there were non-deducted amounts in a traditional IRA. Regardless, what to do is file 8606. (How'd he report it last year?)

If this is all one IRA it is probably a traditional IRA (or is the $25k and $60k two different IRAs, perhaps one traditional and one Roth?)

If it's all one traditional IRA just complete 8606 Part I and attach to return to calculate taxable amount.