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Retirement tax questions
Tracking basis in a Roth matters if you take out an early distribution. In that case, you are allowed to withdraw the amount of your contributions tax and penalty free. However, your growth can be taxed and subject to early distribution penalties. Once you reach the point where you can receive a distribution tax and penalty free, your basis is less critical.
However, if you do need to know your basis because of early distributions, it is the total amount of Roth Contributions you have made over the years, or full conversions of TIRA accounts to a Roth.
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‎June 1, 2019
11:08 AM