Hello. I have multiple Roth IRA accounts. I do this for ease of tracking the 5 year rule on taxable growth in Roth accounts. Let's call them Roth-2022, Roth-2023, and Roth-2024. All opened after I reached 60 years old and each created from a $50k conversion from my Traditional IRA in January of each year.
During 2024, I pulled out $12k basis from Roth-2022 and pulled out $19 basis from Roth-2023 - totaling $41k.
For tax year 2024, I received a 1099-R for Roth-2022 and a 1099-R for Roth-2023. Both were input into TT-2024 manually (not via import).
Here is the problem ... when looking at the final tax return produced by TT2024, and the embedded IRA Information Worksheet, specifically line 55 "2022 conversion contributions taxable at conversion" I see only $9k in basis left, which tells me that TT applied **ALL OF THE BASIS WITHDRAWALS** to only Roth-2022. I know this also because line 57 "2023 conversion contributions taxable at conversion" reflects its entire initial basis of $50k.
***This appears to be a bug in TT in that it doesn't differentiate when basis withdrawals are made in same year across two separate Roth accounts***
THEORY: It is interesting that when inputting the 1099-R for each Roth (with a basis withdrawal) into TT, the system does NOT collect the account number. So, perhaps in current design it cannot correctly handle this scenario of separate basis withdrawals across two separate Roth accounts in the same tax year?
