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Level 2
posted Jan 28, 2025 6:57:06 PM

Interest in Retirement Accounts

If the IRS is asking for "Interest in retirement accounts", then for a 401K, is it asking for your total value (gains + contributions) or just the amount you have earned (gains?).  

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1 Replies
Expert Alumni
Jan 28, 2025 7:13:05 PM

The IRS is likely asking for interest earned in your retirement accounts, such as a 401(k). Usually, you don't report interest, dividends, or gains in a regular 401(k) each year. These earnings are tax-free until you take them out. If you received a distribution, it'll be reported on Form 1099-R. All (gains and bonuses) must be included on your tax return. For a Roth 401(k), contributions are made with after-tax dollars, and qualified distributions, including interest, are tax-free.

For additional  information, see a IRS Retirement Plans 🔗 Individual Retirement Arrangements (IRAs)