@flyinhigh wrote:
Yes, I'm preparing my 2024 taxes and thank you for the helpful reply (I did not know about combining Roth IRA accounts (though I only have one)).
And, yes, I started 2024 with $5,000 of prior contributions and withdrew $7,000. So, I will enter zero for the *NET* regular Roth IRA contributions prior to 2024 because there are no *NET* (after subtracting the $7,000 withdrawal from the $5,000 of prior contributions) contributions left).
No, you missed the point. When preparing your 2024 tax return, the program should be asking separately for
- prior net contributions (before 2024)
- and then separately ask for 2024 contributions
- and then ask for 2024 withdrawals (from the 1099-R)
If the program is not clear about the difference between prior contributions and current contributions, that could be re-worded.
If there are $5000 of prior contributions (from 2023 and before), then you need to enter that. It will affect the taxability of the withdrawal.
(However, it is worth nothing that, since your Roth IRA was opened more than 5 years ago, the prior contribution will only affect your taxes if you are under age 59-1/2. If you are over age 59-1/2, then your withdrawals are going to be tax-free regardless of the mix of contributions and earnings.)
