@Hal_Al wrote:
Q. So am I correct in assuming that none of the distribution is considered earnings?
A. Yes, but only if the 2023 distribution (withdrawal) was the only distribution over the years.
Ah, ok. I may have over-simplified the calculation then, lol.
Does it matter whether the distributions in previous years were for qualifying expenses or not?
Assuming it doesn't, and therefore qualifying distributions still affect the earnings, let me see if I have this right...
Let's say there were $28000 in contributions over the years. Now let's say in 2022 there was a distribution of $5000, where 50% is basis and 50% is earnings. Does that mean that for 2023, the contributions would be considered to be 28000 - (50% of 5000) = $25500? These are just theoretical numbers, but just want to double check I know how to calculate it properly. Thanks again.
