Roth IRA distributions and basis history

[gustus]

I have had a Roth IRA since 2006, and have not made any contributions to it since retiring in 2012. I got distributions from it in 2019 and 2022. I discovered that I reported the cost basis incorrectly in both years, under-reporting in 2019 and over-reporting in 2022. However, in neither case would a correct reporting have made any difference, i.e. no additional taxes would have been due on the distributions. In my Turbotax pdfs of my submitted taxes for both years, there is no IRS form 8606, just Turbotax's "IRA Information Worksheet...Keep for your records" form. My questions are (a) did Turbotax report the incorrect cost basis info to the IRS in some way that is not apparent in my records, (b) if so, what if anything should I do to correct what IRS has even if it does not affect my ultimate taxes, (c) if not, will amending the Turbotax form to reflect the correct info in the program file for 2022 be sufficient to populate the correct info when I do my 2023 taxes?

[DavidD66]

Can you clarify something please:  You stated that you are retired.  Were you age 59 1/2 or older at the time you took the distributions in 2019 and 2022?  If so, the cost basis of your Roth IRA is not relevant for tax purposes.  Are distributions are tax free.  

[dmertz · Accepted solution]

Since your Roth IRA distributions were qualified distributions and therefore not reportable on Form 8606, your basis entries were not included anywhere on your filed tax returns.  You are now using TurboTax only for tracking the basis for you own information and you can just correct the entries in TurboTax to make that tracking accurate.

[gustus]

Yes, I was over 59.5 for both distributions, which I should have mentioned. Both distributions were tax-free.

[gustus]

That's what I hoped. Thanks!