ahhh......so since I have never taken out of my Roth IRA before, Ive never been required to file 8606.
The only reason I got an 8606 was because I converted my traditional IRA to a Roth in 1998. I paid the taxes out over 4 years. I just want to understand what basis is. On my worksheet, Turbo Tax has been recording the same number each year......in my case $40,127. Its on the line that says "Cumulative pre xxx year conversions-taxable and non taxable". im guessing that this $40,127 is my basis? Therefore since I withdrew $40,000, none of it would be taxable?
