Form 8606, Line 22 - Include 2014 403b rollover in Roth basis?

[esmesoc14]

Hi, I need to fill out form 8606 this year, and I'm not sure what all I need to include on Line 22 for the Roth IRA basis. I know I include all prior contributions I made to my Roth IRA, which seems simple enough, but I'm not sure if the initial rollover I did when I first opened the Roth account counts as a contribution for the purposes of calculating the basis. It was a rollover from a 403b in 2014, reported at the time on a 1099-R, distribution code H for a "direct rollover of a designated Roth account distribution to a Roth IRA." Should that rollover amount be considered a contribution for the purpose of calculating the Roth basis on Line 22 on Form 8606? Do I include the rollover or not? Thank you!

[dmertz]

You were apparently not yet age 59½ when you took the distribution from the Roth IRA, otherwise the distribution would be a qualified Roth IRA distribution (because your first contribution to the Roth IRA was more than 5 years ago) and you wouldn't be preparing Form 8606 Part III.  The amount shown in box 5 of the code H 2014 Form 1099-R that reported the rollover (not the entire amount rolled over) became contribution basis in your Roth IRAs.  That box 5 amount needs to be included on Form 8606 line 22 along with the contributions that you made directly to the Roth IRA.

[esmesoc14]

Correct, I was not yet 59 1/2 when I rolled the 403b into the Roth IRA. The amount in box 5 on the 1099-R is actually $0, so it seems this will not add to the Roth contribution basis after all. Thank you for your response. 

[dmertz · Accepted solution]

Was the money in the Roth 403(b) the result of an In-plan Roth Rollover within 5 years of 2014 (2010 through 2014)?  If so, that would be in box 10 and in your Roth IRA would have become basis in Roth conversions before 2016, essentially equivalent to Roth conversions but would be present on Form 8606 line 24 instead.  It's not possible that your distribution from the Roth 403(b) didn't include some basis that would reduce the taxable amount of your Roth IRA distribution in 2020.  You might need to go back through your Roth 403(b) statements to find your basis in Roth contributions and In-plan Roth Rollovers if the plan failed to reflect these on the 2014 Form 1099-R.

[esmesoc14]

Hmm Box 10 also shows $0 so it sounds like I will need to look back through the old statements to find the contribution amounts.