Skip to main content
February 1, 2025
Question

If I took out all my roth ira and closed my account. What do I enter at "Enter Prior Year IRA Contributions"?

  • February 1, 2025
  • 1 reply
  • 0 views
If I close my roth ira, what do I enter for Roth IDA Contributions prior to 2024?

    1 reply

    February 1, 2025

    The question is asking how much money you contributed to the account prior to 2024 so that the taxable amount of what you took out of the account can be calculated.

     

    Enter the total amount of money that you put into the account through the end of 2023.  Do not include anything that was contributed to the account during 2024.  

     

    If the total amount you took out when closing the account is less than the total amount you put into it (minus any prior distributions), then the distribution when you closed the account would be non-taxable.  

     

    If the total amount you took out when closing the account is more than the amount you put in (minus any prior distributions), then the difference is considered to be taxable income and could be subject to an early distribution penalty as well.

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