@RC519 wrote:
I had two 401k lump-sum distributions last year. The two companies handled everything differently.
Having a cost basis for the smaller Roth rollover and nothing for the larger rollover and nothing for what's in the Roth IRA already after many conversions is not even going to close.
I also don't "get" why anyone needs to know my cost basis for my Roth IRA. Frankly I don't even know it since it's been populated completely with after-tax from conversions and roll-overs. What legislation might affect a Roth .. the back door conversions .. I don't think I'm doing any of that anyway.
I would be interested in knowing more and I could easily be missing something.
I prefer not to put numbers on worksheets if they are totally inaccurate. As long as omitting box 5 is okay, this issue should be fine. I may call the issuer but I suspect getting a re-issue without box 5 is not "in the cards".
Please Advise
If you are under age 59 1/2 you can withdraw your own contributions (cost basis) from your Roth IRA at any time tax and penalty free. That is why you need to track the cost basis.
**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.**
