ThomasM125
Expert Alumni

Retirement tax questions

That question is likely being asked to determine the basis in the IRA account, which be can needed when distributions are taken to determine the amount of the distribution subject to taxation. A distribution from a ROTH IRA would not normally be taxable, but it could be if it was made before age 59 1/2 or when the distribution was made before the five year required holding period. 

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