We each have a Roth but never kept track of our Roth contributions since all distributions would not be taxable. What figures should we use then since in TurboTax it appears IRS is now tracking distributions from contributions separately from those from earnings? Are records do not go back that many decades.
See.. 'Enter Prior Year Roth IRA Contributions', then
'Report xxx's net regular contributions prior to 2024'.
From the 'Learn More' link:
'Net Regular Contributions to a Roth IRA
If you contributed to a Roth IRA prior to 2024 and then withdrew any contribution amount, you must calculate the amount left in the IRA.
To calculate this amount, apply the Roth IRA distribution ordering rules.
Example:
You contributed $3,000 to your Roth IRA in 2021, 2022 and 2023. On June 1, 2023, you withdrew $2,500 from your Roth IRA. Subtract this amount ($2,500) from the total contributions you made ($9,000) and enter the remaining $6,500 under regular contributions to a Roth IRA.
Note: The contributed amount does not include funds converted from traditional IRA accounts.'
What would IRS's reasoning be to track your remaining contributions-only balance if not to treat differently from any earnings?
Thank you!
