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Retirement tax questions
Your basis is the amount of non-deductible contributions that you have made over the years. This does not include any earnings from investments in the accounts or dividends added to the accounts. Those things increase the total balance of the accounts, but they do not change the basis.
The basis is only changed when you make a non-deductible contribution (basis will increase) or take a distribution (basis will decrease). Form 8606 is used to keep track of the basis.
So, prior to your 2024 non-deductible contribution, you basis is still the same from the 2021 Form 8606. But, the total balance will be different.
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‎April 5, 2025
4:08 AM