What does this mean: Were Any Roth IRAs Open?

[eadkadlac]

I retired in 2023, but 2024 is the first year that I'm dealing with 1099-Rs.  This question is for the 2024 tax year.  I have read the responses for this question that were posted previously.  However, those responses do not match what the TurboTax live assistant told me when I asked the same question.  What she said is that the question is asking if you made any contributions to your Roth in the tax year.  I did not (and can't since I am no longer earning an income), but I do have two Roths that have been open for many years.    So, is my answer Yes or No, and what are the implications?  TurboTax then starts asking me about my total contributions to the Roth.  One of the Roths was transferred a number of times due to brokerage mergers and I can no longer see the total contributions since inception.  Do I just guesstimate on that number?  What are the implications of the number that you enter?

[dmertz]

The response that you got from the live assistant is wrong.  It is not asking anything about contributions.  TurboTax is simply asking if you had any money in Roth IRAs at year-end (and no outstanding rollovers of Roth IRA distributions that would need to be added back to your year-end balance).  Since you did have money in Roth IRAs at year-end, answer Yes.

(This question in TurboTax currently serves no purpose given the changes to the tax code made by the Tax Cuts and Jobs Act of 2017 for tax years 2018 through 2025.)

[rickinliberia]

Thanks for your question as I wondered the same.  But you only got the first part of your question answered-that you do check yes.  But what did you learn about the next step of filling in prior contributions?  Perhaps not worry about it due to the statement that it is not relevant?

[dmertz]

TurboTax needs to know your basis in Roth IRA contributions and conversions to determine on Form 8606 Part III the taxable amount if your Roth IRA distributions are not qualified distributions.  That's entirely separate from needing to know if any Roth IRAs were "open" at year end.