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

[killerasteroid]

Turbo Tax is also asking me for this information and I an over 59 1/2. If it knows my age and it also knows that any withdrawals made after 59 1/2 are tax free, why is it asking me to provide net contribution information????

[dmertz]

The fact that you are over age 59½ is not a reason for TurboTax to skip asking for you Roth IRA contribution and conversion basis.

If it has not yet been 5 years since the beginning of the year for which you first made a Roth IRA contribution, distributions would not be qualified distributions and are required to be reported on Form 8606, which requires entering your Roth IRA contribution and conversion basis.

Also, the miscellaneous deduction for unrecoverable basis will be reinstated in 2026, so your basis information might be needed after 2026 if your Roth IRAs have suffered investment losses.  Tracking your Roth IRA contribution and conversion basis now is much easier that trying to reconstruct it later, if need be.

[killerasteroid]

But I have been using TT for over a decade and during that entire time each year I have reported ROTH contributions so TT KNOWS it's been more than 5 years since I first began contributing so again, based on that, all withdrawals are non-taxable. So again, why is it asking me this? Al;so, why not just ask me if I have been contributing for at least the last 5 years instead?

[macuser_22]

The answer to the question is required by the IRS.  The IRA Information Worksheet that tracks contributions is provided as a convenience and not required.    Many taxpayers do not enter it at all or do not use TurboTax every year.    To be consistent for all taxpayers and to ensure that the 5 year rule is met, TurboTax requires an explicit answer and not rely on carry-over worksheets that may or may not be accurate or even exist.

[dmertz]

See the third paragraph in my previous reply.  The ability to claim (after 2025) a miscellaneous deduction for unrecoverable Roth IRA basis requires that TurboTax know you basis.  Because this deduction will be reinstated, it makes sense that the question has not been eliminated from TurboTax for those who have met the requirements for qualified Roth IRA distributions.

[killerasteroid]

So where is one to find total contribution information? it doesn't show it on my statement and I can't find it online.

[macuser_22]

Your IRA contributions must be tracked by you.  They are reported to you by the financial institution on a 5498 form each year that you make a contribution, but you must track the totals.     Because the IRA basis applies to ALL IRA accounts of the same type of IRA, the financial institution cannot know about other accounts that you might have so they cannot track it for you.

If you use TurboTax every year and always transfer last years data then  the totals that TurboTax has would be on the IRA information Worksheet.

[tvnalln]

I know this an old thread but my question refers to the same currently.  I opened a Roth 20 years ago contributing $4K and never contributed again.  Obviously it grew over the years and I took out $5K in 2017 and closed it in 2021 taking out $4,600.  What do I enter as prior contributions?

[LeonardS]

Your prior contributions would be the $4,000 contribution you made 20 years ago.

[denstef]

It seems there is an error or issue with the TT if we are asked about Roth IRA prior year net contributions in the case we are older than 59Y1/2. Please correct the interview and save our time using TT. Thx.

[denstef]

The question should be first if we have the account over 5 years and we are older than 59 1/2Y .  I cannot find my original contribution when I opened the account long time ago (more than 15 years ago).

[KathiMR]

Really confusing instructions they are giving. They need to clarify that that would be for non-qualified distributions.

I will need to go back I guess & file 2 previous years taxes. Got way behind but hardly any earned income so over contributed. So just doing this year.

I also hope they are getting non-taxable treated as non-taxable. My income drastically went up in retirement.

[KathiMR]

That is really confusing. I haven't the foggiest what my total contributions have been & they go back to at least 2000. & since I am well past 59 1/2 they shouldn't need to know.

[dmertz]

@KathiMR , since your distributions from the Roth IRA are qualified distributions, you can just enter zero for your contribution basis.

[KathiMR]

I have a couple years I didn't file so had to re-enter info. I wanted to pull up a previous return to check the biz category, since it we do more than one thing so trying to look up what I had before. But when I try to open it says it recommends I install updates! & won't let me go ahead w out that!

& I think that is one reason I didn't finish filing before since I think it lost previously entered data.  I just want to look at it.  Or maybe I can find a copy of my return,