Roth IRA Withdrawal Basis Calculation

Forum|Forum|2 years ago
October 30, 2023
2 replies
0 views

Hello,

I have always done my taxes with TurboTax. In the early 2000s my father opened a custodial Roth IRA account for me with Vanguard. This account passed to me in 2014. Unfortunately, I am not able to determine the contributions amount in order to take an early withdrawal with no penalty. Vanguard has said they do not track the contributions, and are unable to figure it out. I do not have Form 5498 for the years that contributions were made. How can I go about making an "educated guess" on what my contributions were? Or should I call the IRS to see what their records are, as Vanguard said they sent a Form 5498 each year to the IRS? I would like to make a withdrawal soon, and make the correct withdrawal amount without any sort of penalty. Thanks in advance for your help.

Not A Product Question

dmertz

Level 15

[Deleted]

dmertz

Level 15

It's your responsibility to have tracked the basis of contributions made to your Roth IRA on your behalf. These would have been reported on Forms 5498 and absent other records that's likely the only place where you would be able to find that information. The IRS will be able to provide you with Wage & Income transcripts showing more recent contributions, but you'll probably not be able to get ones going back more than 10 years.

If the funds are to be used for a first-home purchase, because you've had the Roth IRA more than 5 years up to $10,000 to be used for the purchase can be taken out free of tax and penalty without knowing your contribution basis, although line 22 of Form 8606 is still supposed to show your contribution basis.

mjcoucheAuthor

Level 2

Yes, thank you. Vanguard has already told me as such. I need help making a ballpark estimate if I have a general contribution amount per year and current balance.

Bsch4477

Level 15

If Dad is alive ask if he made the maximum allowable contribution each year and calculate it that way. Also ask Vanguard how far back you can get year end statements.

dmertz

Level 15

Good point. Although Vanguard would not track a cumulative total, Vanguard had to have acknowledged the contributions so that they could properly prepare Forms 5498. You could ask Vanguard how long they retain their copies of Forms 5498 and obtain copies of the ones they can provide. (My IRA custodian retains copies for only 7 years. Vanguard might be the same)