ROTH IRA basis & employer program

[marcellas]

Two questions related to ROTH IRA's.  I have 2 seperate ROTH IRA's.  One I set up on my own and contribed after tax funds to over multiple years.  The second was initiated by my employer as a ROTH 401K as part of our benefits.  When I retired the employer ROTH 401K was transferred to a ROTH IRA investment account.  I am now drawing from both and they are NOT required distributions.  They are qualified and not taxable.  

Turbo Tax is asking  for "prior year ROTH IRA contributions".  Somewhere in the TT Community info I read that you do not include employer plans in this number.    Yet the instructions only say to exclude earnings and losses or amounts converted from a traditional IRA. 

Question 1.  Do both my Roth IRA accounts get included in that total?

Question 2.  Where do I find the basis, since contributions have been made of the last 20+ years, via payroll deductions and employer contributions.?

[DanaB27]

First, if you are over 59 1/2 and had the Roth IRA for 5 years then your distributions would be Qualified Distributions and you don't really have to worry about entering the net contributions prior to 2022 since all your distributions will be non-taxable. What code do you have in box 7?

1) Yes, the designated Roth account contributions will be included in the prior year's Roth contribution amount (Roth basis). Please see Calculation of Roth basis for additional information.

2) You might look at your past Form W-2: Your Designated Roth contributions under a section 401(k) plan should be listed in box 12 with code AA.

[marcellas]

Thank you Danab.  I am 64 and the code for both of the distributions is "Q" Qualified Roth distributions.  I retired at the end of 2020.  I will have to dig out my old w-2.  Very much appreciate your quick response and direction.  Thank you again.

[dmertz]

If you completed the 5-year qualification period in the Roth 401(k) before rolling the funds over to the Roth IRA in 2020 or later, all of the money rolled over to the Roth IRA became part of your contribution basis in your Roth IRAs.

However, you do not need to provide TurboTax with this information because your distributions from your Roth IRAs are qualified distributions, so no calculation is required on Form 8606 Part III to determine the taxable amount.  Qualified Roth IRA distributions are not reportable on Form 8606.

[marcellas]

dmertz,

Thank you very much for your quick and helpful response.  I did meet the 5 year qualification period so will not be reporting this on the turbotax form.

[dmertz]

The distribution must still be present on Form 1040 line 4a.  When you enter the Form 1099-R into TurboTax, TurboTax knows that code Q means that the gross amount must be included on Form 1040 line 4a but excluded from from taxable income on line 4b.