Question

Where to add prior year Roth IRA contributions?

Forum|Forum|2 years ago
March 18, 2024
1 reply
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I withdrew some money from my Roth IRA to pay for my children's tuition. The amount I took out was less than the total amount I have contributed over the years. The 1099-R has "taxable amount not determined" checked off. This Roth IRA was opened with another investment company originally that stopped servicing Roth IRAs, so part of my contributions were made with the other company's account and part was made to the current investment company's account. I cannot find where to enter prior year contributions anywhere so that I do not get taxed. I have seen older discussions in the TT community, but they refer to a field "Enter Prior Year Roth IRA Contributions" but when I search for this topic within TT nothing comes up. Where do I enter this information so I am not taxed on the contributions I have already paid taxes on?

A

AnnetteB6

After you enter your Form 1099-R, there should be some follow-up questions to go through. One of those questions will ask about Prior Year Roth IRA Contributions. This is where you should enter the amount that had been contributed to the account.

If you do not see those follow-up questions, then go to Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions.

This will bring you to a screen with checkboxes to indicate what types of accounts you had in 2023. Be sure that Roth IRA is checked. Click Continue.

If Traditional IRA is checked or if you have a spouse that had either type of account, the next questions will not pertain to your Roth IRA. Continue through this section until you are asked whether you made any contributions to your Roth IRA for 2023. This is the beginning of the section where you will enter details about your Roth IRA, including the basis.

Continue answering the questions according to your situation. On the screen where you see Let Us Track Your Roth IRA Basis, click Yes.

Then, on the screen titled Enter Prior Year Roth IRA Contributions, this is asking for your total contributions for years prior to 2023 (basis). If your basis exceeds your distribution, then the distribution will not be taxable. If the distribution exceeds your basis, then the excess will be taxable.

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