What is the amount for "Basis of Retirement Income"?

ab_17 · ‎June 4, 2019

My wife worked with a company providing food services to schools. She has not been working with the company since 2015. . The company has a retirement plan. In 2016 the company sent a check to my wife for the total amount of the retirement plan saving ($459). Is "Basis of Retirement Income" equal to $459?

ToddL · ‎June 4, 2019

Unless she made non-deductible (i.e. after-tax) contributions to this retirement plan, her basis in the retirement plan is "0".

In the vast majority of private retirement plans, contributions are made with "pre-tax" contributions - deducted from pay before calculating your taxable income.

What is the amount for "Basis of Retirement Income"?

Retirement tax questions