Roth Basis

[marciamneal]

I'm 54, I want to pay my house off with my Roth basis. My Roth account has changed companies a couple times now because of mergers. I've had this Roth since my 20's and I just have no idea my actual basis is. 

What can I do to make sure I don't take out too much. 

Thank you!!

[Opus 17 · Accepted solution]

Unfortunately, if you are audited, the burden of proof is on you to show that you are entitled to any tax break, including tax-free withdrawal of Roth contributions.  You can get transcripts of your account from the IRS, but they only go back 3 to 10 years, in most cases.  You are looking for any form 5498 that was filed with the IRS by the Roth administrator to report contributions.

https://www.irs.gov/individuals/get-transcript

You can also contact all your past Roth custodians.  They should have records even if you moved your funds out of their account.  

[marciamneal]

Thank you!! That was helpful!!!

[fanfare]

Once your Roth IRA has existed for more than five years, there is no issue with basis.

Any withdrawal is tax-free.

@marciamneal 

[Opus 17 · Accepted solution]

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@fanfare wrote:

Once your Roth IRA has existed for more than five years, there is no issue with basis.

Any withdrawal is tax-free.

@marciamneal 

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Incorrect.  If the taxpayer is under age 59-1/2, withdrawal of earnings is subject to income tax plus a 10% penalty, and withdrawal of conversion amounts is subject to a 10% penalty if it is less than 5 years since the date of the conversion (each conversion has a separate 5 year clock that is different from the general 5 year clock).