DanaB27
Expert Alumni

Get your taxes done using TurboTax

Please be aware, you have the Roth basis and the traditional IRA basis.

 

The basis in the traditional IRA is tracked on Form 8606. You will have the leftover basis listed on line 14 (the basis for 2021 and earlier years). This basis will be allocated to each traditional IRA distribution (Or if you make a conversion) you make in the future. 

 

 

Yes, you will need to keep track of your direct contributions to the Roth and any conversions to the Roth separately.  You also need to keep track if you make distributions from the Roth. This is only important if you plan to take a nonqualified distribution from your Roth before you are 59 1/2 and had the Roth account for less than 5 years. Then TurboTax needs the net contribution (contributions minus withdrawals) and conversion information to calculate how much of the distribution is allocated to the earnings. You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. When you take Qualified Distributions then the full amount will be tax-free.

 

So assuming the $36,924.69 are direct contributions to the Roth and you didn't make any withdrawals then you would track 36,924.69 as net contributions. And the conversions you will need to track separately. You can find this information on your "IRA information worksheet" if you used the option for TurboTax to track your Roth basis. You can see that TurboTax tracks your 2021 conversion on line 59 2021 conversion contribution taxable at conversion $(5,210) and line 60 2021 contribution conversion not taxable at conversion ($790).

 

@omkarprabhu

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