What is unrecovered contributions to Roth IRA?

[IsabellaG]

That is the amount that you have contributed to all of your Roth IRAs since you started contributing that you haven't taken out as a distribution.

[terri08083]

I need to enter the "unrecovered contributions" for my husbands personal IRA.  I have come to understand this is the total amount that we contributed over the lifetime.  This IRA is not work related.  However, it seems any information I find to assist me in determining exactly what an unrecovered contribution is always refers to a Roth IRA, not a traditional IRA - which we have. Does someone know if it doesn't matter what kind of IRA and am I correct in what an unrecovered contribution is?   Thank you to any help you can give.

[DaveF1006]

Unrecovered contributions are the amounts  that you have contributed to all of your Roth IRAs since you started contributing that you haven't taken out as a distribution. Usually you track these with a form 8606. Also if you received a 5498, these report your Roth contributions in Box 10 of the form.

[TerryD]

So, I'm seeing this question as well on my TT for 2021. My question is, how on EARTH are people supposed to know or keep track of every single Roth IRA contribution, since inception?? Like most or many, we have had several brokerage firms managing our money, which have consolidated, merged and acquired (Waterhouse, TD, Morgan Stanley etc), all of whom had those figures decades ago. So, back to my question. How does the State of NJ expect folks to know the "exact Roth IRA contributions", from all these years past? And why doesn't Turbo Tax clarify what the heck this question is?? Nobody knows, put an explaination in the software! 

[ErnieS0]

New Jersey has been an issue since the state does not allow a deduction for IRA contributions and many people do not keep track of them.

Roth distributions are not includible in New Jersey income so any distribution will be tax free @TreeyD.

Your should report Roth contributions on your federal tax return every year even though they are not deductible. Additionally your Roth provider will send you and the IRS a Form 5498 showing your annual contributions.

[TerryD]

Hi Isabella,

I'm still confused by this topic. I'm a longtime TT user, recently retired, so hitting this question now, which I've

never seen before (NJ state Tax section). So, I need to complete either 4a or 4b it seems, right? If so, then for First year of withdrawal from IRA - all we have is a small amt from my wife's RMD from an inherited IRA - assume this does not count, since they're looking for Roth IRA amounts here, correct? If so, then we enter "$0", I assume, and we're good? Then Part B for second and later years - do we need to complete that, or will TT Auto complete? Very confusing. Any idea why TT isn't loading this figure in automatically? We've been entering it yearly. Thanks. 

e. 

[RobertB4444]

@TerryD

Yes.

In this case they are asking about previously taxed Roth contributions.  Since you don't have a Roth the amount is zero.

[TerryD]

Hi Robert,

Yes we do have Roth accounts...but we have not withdrawn from them yet. Does that change things?

Thanks. 

[DaveF1006]

If you have a Roth account, then none of your previous contributions have been taxed. As Robert B4444, mentions, put a zero in the section you illustrated above.

@TerryD

[TerryD]

Perfect, thank you Dave!