Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Dom2
Level 3

Roth IRA - Report net regular contributions prior to 2020

I've been taking relatively small roth distributions for the last three years.  If I have been using TurboTax for many years I'm confused why the program would be asking a question about contributions.  Isn't this information provided each year when taxes are completed.  Unless I'm missing something it seems TurboTax should supply this information instead of me tracking it outside the program.  Again, unless I'm missing something here.

 

Thoughts?

5 Replies
jc_penny
Level 3

Roth IRA - Report net regular contributions prior to 2020

My guess:  

 

The numbers that TT imports from the prior year are static, that is they are either from the previous year or totaled from previous years (think capital loss carryover).  TT does not track your prior years' activities that are not summarized each year such as IRA Contributions/Withdrawals because all they use to pre-load is the previous year if available.

 

Too many options every year to try to program that for us.

Irene2805
Expert Alumni

Roth IRA - Report net regular contributions prior to 2020

TurboTax may be asking if you had any contributions to a Roth IRA because you may not have entered information about your Roth contributions.  There is no deduction benefit for contributing to Roth IRA. 

 

 

While Roth contributions are not reported on your tax return, it is a good idea to enter them the in the IRA contribution section anyway because TurboTax will:

  • track the basis of your contributions for you year-to-year. [This becomes important when you start making withdrawals--to track how much of the distribution is taxable.]
  • alert you if your MAGI exceeds the Roth contribution limit and are subject to a penalty.
  • alert you if you have insufficient earned compensation to contribute.

    You do not need to include contributions to a Roth in your return

    While Roth contributions are not reported on your tax return, it is a good idea to enter them the in the IRA contribution section anyway because TurboTax will:

  • track the basis of your contributions for you year-to-year. [This becomes important when you start making withdrawals--to track how much of the distribution is taxable.]
  • alert you if your MAGI exceeds the Roth contribution limit and are subject to a penalty.
  • alert you if you have insufficient earned compensation to contribute.
Dom2
Level 3

Roth IRA - Report net regular contributions prior to 2020

Hi Irene2085,

 

I think you are correct in that I haven't entered Roth contributions through the years (embarrassed to say).  Looks like I did record a Roth rollover from a number of years ago and Turbo Tax has been subtracting from this amount correctly.  Not sure if I could reconstruct all my Roth contributions but if I could is there any way to enter into TurboTax now?

DaveF1006
Expert Alumni

Roth IRA - Report net regular contributions prior to 2020

Yes, there is a way to enter your Roth information in Turbo Tax that will allow you to enter all past contributions you made. You will need to reconstruct your statements in the past so you can accurately report your past contributions as well as your present contribution for 2020..

  1. Log into Turbo Tax

  2. Go to federal>deductions and credits>retirement and investments>show more

  3. Traditional and Roth IRA Contributions>start

  4. Scroll through the screens and answer the questions including this year's contribution.  Continue until you reach a screen that says Did You Open a Roth IRA Before 2020? Yes

  5. Next screen says Let Us Track Your Roth IRA Basis indicate yes

  6. Then it asks if you withdrew any of your Roth before 2020

  7. Next screen asks Enter Prior Year Roth IRA Contributions  Here is where you enter the total of all your prior year's contribution.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dom2
Level 3

Roth IRA - Report net regular contributions prior to 2020

Yep, I’ve seen this, Thanks

Dynamic AdsDynamic Ads
Privacy Settings
v