Should I correct my IRA Basis Roth adjustments Worksheet ?

[lg171]

I see on the IRA basis worksheet - Roth IRA Basis adjustments Turbotax 2025 shows that there is a basis on my Roth IRA. This idea of basis on my Roth had me confused as I have already met the conditions for any Roth withdrawals to be tax free.

1.This appears to have happened a couple of years ago. I rolled over a Roth IRA into  another Roth IRA which had existed and been added to for  more than 5 years. I am also over 69 1/2. I now understand that Turbotax probably started offering  to calculate the Roth basis only several years ago.

2. There was also  a separate Roth contribution  on which a partial recharacterization of a Roth contribution  to a Traditional IRA was necessary  This initial Roth contribution is also showing up incorrectly added to the basis of my Roth.  The recharacterization was done correctly on the 8606 and added to my Traditional IRA basis properly. 

Since all of my Roth contributions and earnings will now be tax free when withdrawn do I just ignore the basis listed or will that be a problem with Turbotax tax calculations later on?

[DanaB27]

Yes, you can ignore your Roth IRA basis.

All your distributions are tax-free Qualified Distributions since you are over 59 1/2 and had the Roth IRA for more than 5 years. You can skip the question when TurboTax asks about your prior contributions.

[lg171]

Thanks! Since the Roth basis was added several years ago should I remove the Roth basis info on the IRA worksheet? Maybe Turbotax might use the Roth basis when I start withdrawing funds from the Roth. If it won't or will let me easily override it, then I'll just make a note to ignore that incorrect basis in the future.

[DanaB27 · Accepted solution]

You can delete it if you want but it isn't necessary, since your Form 1099-R should have code T or Q which will tell TurboTax, with the 5 year follow-up question, that this is a Qualified Distribution and to ignore the prior contribution question.

[lg171]

Thanks