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katieA1
Returning Member

Entering a withdrawal from a Roth IRA It asks for me to enter my net regular contributions prior to 2021 that remain in my account. What does that mean?

 
3 Replies
JohnB5677
Expert Alumni

Entering a withdrawal from a Roth IRA It asks for me to enter my net regular contributions prior to 2021 that remain in my account. What does that mean?

This is asking for the sum of all regular ROTH IRA  contributions that you made prior to 2021.  This may be being used to establish a basis in the account.

 

While Roth contributions are not reported on your tax return, it is a good idea to enter them in the IRA contribution section anyway because TurboTax will:

  • track the basis of your contributions for you year-to-year. [This becomes important when you start making withdrawals--to track how much of the distribution is taxable.]
  • alert you if your MAGI exceeds the Roth contribution limit and are subject to a penalty.
  • alert you if you have insufficient earned compensation to contribute.

    You do not need to include contributions to a Roth in your return

    While Roth contributions are not reported on your tax return, it is a good idea to enter them in the IRA contribution section anyway because TurboTax will:

  • track the basis of your contributions for you year-to-year. [This becomes important when you start making withdrawals--to track how much of the distribution is taxable.]alert you if your MAGI exceeds the Roth contribution limit and are subject to a penalty.
  • alert you if you have insufficient earned compensation to contribute.
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katieA1
Returning Member

Entering a withdrawal from a Roth IRA It asks for me to enter my net regular contributions prior to 2021 that remain in my account. What does that mean?

So the total amount of contributions from when I first opened the account to the end of 2020? 

MinhT1
Expert Alumni

Entering a withdrawal from a Roth IRA It asks for me to enter my net regular contributions prior to 2021 that remain in my account. What does that mean?

Yes. You are correct.

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