Hi. I am doing my taxes through HR Block. I have been contributing 5% to my Roth IRA since hire and haven't done anything with the 401k ever since. Do I have a Roth basis?
From what I understand, "you only have an IRA basis when you make nondeductible contributions to a traditional IRA." http://finance.zacks.com/ira-basis-calc ... -4078.html but what about roth IRA? Do my contributions qualify as non-deductible since they are made after-tax?
What is my Roth IRA basis?
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JGoneRiding
- Posts: 1973
- Joined: Tue Jul 15, 2014 3:26 pm
Re: What is my Roth IRA basis?
All roth ira are non deductible. Hence word after tax. It only matters for withdraw bec you can take contributions but not increases early.
Are you sure not roth 401k?
Are you sure not roth 401k?
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PFInterest
- Posts: 2684
- Joined: Sun Jan 08, 2017 12:25 pm
Re: What is my Roth IRA basis?
You might be confusing products. 401 and IRA are different. Each come in traditional or Roth flavors.
Re: What is my Roth IRA basis?
https://www.irs.gov/pub/irs-pdf/i8606.pdf
For a more comprehensive view, see the instructions for lines 22 & 24 of the F8606. Basically you have contribution basis........how much did you make in original contributions to the Roth; you also have conversion basis.......how much did you convert to the Roth. You need to keep track of those because you have to report withdrawals from the Roth and whether those are taxable or have a penalty will depend on how much you withdraw in comparison to your basis.
For a more comprehensive view, see the instructions for lines 22 & 24 of the F8606. Basically you have contribution basis........how much did you make in original contributions to the Roth; you also have conversion basis.......how much did you convert to the Roth. You need to keep track of those because you have to report withdrawals from the Roth and whether those are taxable or have a penalty will depend on how much you withdraw in comparison to your basis.