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New Member
posted May 31, 2019 9:37:25 PM

I have two Roth IRA's. I set one up to give each grandchild money when they got older. I have a second one that is for my retirement only. Need help with my questions.

Ttax wants to know how much I contributed to my Roth prior to 2016. Since I have two Roth's, do I put the total of both in there. Why would any of it be taxable?

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5 Replies
Level 15
May 31, 2019 9:37:26 PM

[Edit]  I think I may have misunderstood originally

If I misunderstood an these actually are two Roth IRA accounts owned by you, yes, for tax purposes, all of your accounts are treated as one combined Roth IRA.  When entering the amount of contributions that you made your your Roth IRA accounts, enter the combined total of contributions that you made to all of your own Roth IRAs.

[My original answer under the (probably incorrect) assumption that these were actually Roth IRA accounts opened in your grandchildren's names.]

You do not have two Roth IRAs, your grandchildren each have a Roth IRA.  The amounts that you put into their Roth IRAs are gifts from you to them which are then contributed to a Roth IRA by them.  For them to be able to contribute to a Roth IRA, each of them must have eligible compensation to support the contribution, generally from wages reported in box 1 of their Forms W-2 (minus any amount in box 11) or income from self-employment.  Their modified AGI must also not be above the limit for being eligible to make these contributions.  If these are not eligible contributions, they are excess contributions subject to penalty on your grandchildren's tax returns.

They (or someone on their behalf) would enter these contributions into TurboTax when each of their tax returns is being prepared.


Level 15
May 31, 2019 9:37:26 PM

Well we really don't know if the 2 ROTH IRAs are both in his name or the grandchild name.  I think it's really still his IRA but in another account.

Level 15
May 31, 2019 9:37:28 PM

I've revised my answer after seeing VolvoGirl's comment.

New Member
May 31, 2019 9:37:30 PM

You are correct. the second is in my name also, I just pull money out for a gift to each grandchild when appropriate.

Level 15
May 31, 2019 9:37:31 PM

Thanks for the clarification and I'm sorry for the confusion on my part.