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fjglenn
New Member

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

 
21 Replies
dmertz
Level 15

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

TurboTax is asking for your net Roth IRA contributions for all years prior to 2018, generally the sum of your Roth IRA contributions from inception (not including contributions for 2018) minus the amount of any Roth IRA distributions prior to 2018.

bob5120
Level 2

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

How do you find out what your total Roth IRA contributions were?
dmertz
Level 15

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

That information would be in your Roth IRA account statements and Forms 5498 that you have received over the years.
chris18
Returning Member

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

For example: If one started the Roth in 2014 and contributed a combined 20k by 2018, then took out distributions of 2k in 2015 and 5k in 2017 the total amount of contributions to report would be 13k?
macuser_22
Level 15

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

@chris - That is correct.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Jdub1
Level 1

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

What if I don't have that information?  I checked with my broker and they only go back 6 years for the form 5498.  I have had my Roth IRA since 1998.

dmertz
Level 15

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

This information is needed only if you make a nonqualified distribution from a Roth IRA which means that you need to supply this information on Form 8606 Part III.  If you do not make any distributions from your Roth IRA before you reach age 59½ there will be no need to know your contribution basis since any distributions from your Roth IRA are qualified distributions, automatically tax and penalty free.

 

If you make distributions before age 59½ but they are less than what you know to be the amount of your contributions, you again have little problem because distributions are not taxable or subject to early-distribution penalty until your distributions exceed what you've contributed.  You could potentially just enter the amount you know, but that kind of locks you in to that, minus the amount of any distributions, being your contribution basis to be applied to any future distributions from your Roth IRAs before age 59½.

 

If you made a previous distribution from your Roth IRAs you would have had to have provided your contribution basis on Form 8606 for that year, so you might have an old tax return that shows the amount of contributions up to that point.

 

If you know you have made the maximum possible Roth IRA contribution each year since 1998, the year Roth IRAs came into existence, you might be able to reconstruct your contribution history from knowing that.  You could also just estimate your contributions and let the IRS challenge the reporting on Form 8606 Part III if they choose to do so, but that would be a last resort since it might mean that you would be filing an incorrect tax return that results in an underreporting of taxable income.

Jdub1
Level 1

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

Thanks for the quick answer.

 

I am 61 and 2019 is the first time I took a distribution from my Roth IRA.  So what I am getting from what you  said it does not matter what number I put in there.  Or do I?  I could put zero.

macuser_22
Level 15

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year


@Jdub1 wrote:

Thanks for the quick answer.

 

I am 61 and 2019 is the first time I took a distribution from my Roth IRA.  So what I am getting from what you  said it does not matter what number I put in there.  Or do I?  I could put zero.


If you are over age 59 1/2 the you can just leave it blank - the distribution is penalty free reguardless of any contributions.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
Jdub1
Level 1

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

Awesome  thanks.

TaxaffairsMT
Returning Member

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

To me it sounds like TT is trying to verify if I am I 591/2 years old? That question is a lot easier for me (70 years) than what are my total contributions over the past 21 years?

KarenM90
Level 11

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

Turbo Tax wants you to enter all of your previous Roth IRA contributions, from inception.  

 

The reason Turbo Tax is asking for this information is so that the program can determine what portion (if any) of any current or future withdrawals might be taxable or subject to early withdrawal penalties.  

 

For more detailed information about Roth IRA Accounts, here is a great Turbo Tax article which outlines the details of how and when future distributions might be taxable or subject to early withdrawal penalties:

 

Roth IRAs-Holding Periods and Withdrawals

 

 

 

 

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killerasteroid
Returning Member

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

Sorry but there's a problem with this answer: Turbo tax knows my age (it's above 60) and yet it's asking me for the net contribution number. Since all withdrawals (your added money plus any interest or dividends) earned in a ROTH and withdrawn after 59 1/2 years of age are non-taxable, Turbo Tax should not be asking me to provide net contribution figures since at my age none of it's taxable.......

killerasteroid
Returning Member

It says enter Roth IRA contributions prior to 2018. Do I enter contributions from inception or just form the previous year

But Turbo Tax KNOWS my age and since I'm over 59 1/2 (at which point all withdrawals are tax free) why it it then asking me for this net contribution information?

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