I left my previous job in Dec 2017, and cashed out the relatively small amount in my 401k and Roth IRA in March 2018. I received two 1099-R forms for both the larger sum (~$2600) and the Roth IRA portion (~$160) to file with my taxes for 2018.
I'm filling out my PA state tax return and it asks what my basis of income is for both of these. Turbo Tax instructions say to contact the plan provider for help filling this part out, so I called my plan provider and quite honestly they were not helpful at all and acted like they didn't know what the question was. I managed to get the basis of income for the Roth IRA (the customer service rep I spoke to told me it was $130) - but they got quite snippy when I asked what the basis for the 401k was, and told me my question didn't make sense and that I needed to consult my tax people.
That being said, I don't have a tax accountant and I was kind of hoping I could get some guidance here if anyone is willing to help me out.
I've read conflicting info online from Googling. Some people seem to claim that the basis would basically be a 0 because it's asking what amount I contributed to the plan post-tax, to prevent double taxing me; however, someone in a Reddit thread mentioned that PA is unique and uses something called a cost recovery, and that I need to find my pre-tax contributions to the 401k over the two years I contributed, then enter that number as the basis. They claimed that in PA, even if it's pre-tax, I only get taxed on my amount that I contributed and not the employer match portion?
I'm just so confused by all the different answers I've seen online, and seeking clarity since my plan provider only made it worse. If anyone can help me out and walk me through it like I'm completely clueless when it comes to taxes, I'd greatly appreciate it!! Thanks so much.
