Retirement tax questions

5498 form are information  only just to show the money was received by the financial institution and do n ot go on a tax return.

 

The 5 tear rule applied to *IRA's* only and not to 401(k) Roth.   The 5 year clock start when  you open the first Roth IRA with any financial institution.

 

As I said above, you can apply the after tax "basis" that was in the 401(k) Roth to the rollover Roth IRA.    That does not affect the 5 year rule.  

 

You can always withdraw your own prior contributions tax and penalty free, any tax only applies to any earnings that are removed.   That is why TurboTax asks for your past contributions so they will not be subject to any tax.

 

If the total distribution was more then your basis (contributions) then the difference is taxable AND subject to an addition 10% early distribution penalty for being under age 59 1/9.

 

 

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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