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Level 1
June 5, 2019
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Why would I need to track the basis of a Roth IRA? I have not converted any traditional IRA's but I did roll at Roth 401-k into my Roth IRA.

  • June 5, 2019
  • 1 reply
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Best answer by DavidD66

The main reason you would want to track Roth IRA contributions is in case you make early withdrawals.  You can take distributions of your Roth basis prior to age 59 & 1/2 without having to pay any tax or penalty (subject to certain restrictions).  If you never take early distributions, and didn't do a conversion, then under current tax law you would never need to know the basis.

1 reply

DavidD66Answer
Level 15
June 5, 2019

The main reason you would want to track Roth IRA contributions is in case you make early withdrawals.  You can take distributions of your Roth basis prior to age 59 & 1/2 without having to pay any tax or penalty (subject to certain restrictions).  If you never take early distributions, and didn't do a conversion, then under current tax law you would never need to know the basis.

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