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June 1, 2019
Question

What does basis in retirement plan mean?

  • June 1, 2019
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June 1, 2019

Your basis or cost basis is what you saved into the plan. Earnings, interest, and appreciation are not part of your basis. For example if your IRA account is worth $10,000 but out of that $2000 is earnings (interest, divendends, or appreciation) then your basis is $8000.