How do i calculate my Roth basis?

Forum|Forum|2 years ago
April 1, 2024
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How do I calculate my Roth basis and will it change every year?

TurboTax Deluxe Online

DavidD66

Your Roth basis is the contributions you have made to your Roth account, if you have not taken any distributions. If you have taken distributions, they are considered return of basis first. You basis will only change when you make contributions to, or take distributions from your Roth IRA. Otherwise, your basis will not change.

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virginia_pirroneAuthor

Thank you … so my specific situation is this… I am retired and have been taking distributions from my Roth account since 2021. I’m not sure if last year I provided the correct cost basis, but my question has to do with this year. Do I recalculate my cost basis now based on how much I have taken out since I have retired? Also, I don’t know by return of basis first. Other than this one issue, I have no other problems with my taxes this year.

DanaB27

If you had the Roth IRA for 5 years and are 59 1/2 or older then this will be Qualified Distributions and your Form 1099-R should have code Q in box 7. In this case you can ignore TurboTax questions about net contributions prior to 2023.

If your Form 1099-R shows code J in box 7 then you will have to keep track of your net contributions prior to 2023 and enter it in TurboTax. Yes, your net contribution would be your contribution minus distributions taken before 2023.

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