Help with cost basis on Roth IRA non-qualified distribution

fxu
fxu Member Posts: 3 Newcomer
in Filing my taxes

Hello,

I need some help understanding my rollover + non-qualified distribution to minimize my tax liability (if any) and not get flagged for doing something silly.

I had a Roth 401k with my previous job that I rolled over DIRECTLY to my Roth IRA. I received 2 1099Rs for this rollover.

1099R #1

X Total distribution

Box1: $12983 (gross)

Box2a: $12983 (taxable amount)

Box4: $2597 (tax withheld)

Box7: G (distr. code)

1099R #2

X Total Distribution

Box1: $17065 (gross)

Box2a: $0 (taxable amount)

Box4: $0 (taxable amount)

Box5: $13851 (employee contributions)

Box7: H (distr. code)

Box11: 2022 (year designated roth cont.)

Then, I had made a bunch of withdrawals due to personal issues (I do not meet the hardship criteria for these). This my 1099R from my Roth IRA for the distributions:

Box1: $39,800 (gross)

Box2b: X (taxable amount not determined)

Box4: $8756 (tax withheld)

Box7: J (distr. code)

I added up my cash contributions that I personally made PRIOR to 2024 to this Roth IRA and it came out to be $12,550.

Is it fair to say that my Roth IRA basis is the $12,550 + $13,851 (box5, contribution on 1099R #2) = $26,401?

Or am I going about this all wrong?

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Comments

  • DaveT
    DaveT Member Posts: 36 Level 5

    Your direct, non-payroll contributions are tracked and reported annually on Form 5498 which is issued in May of each year. Make sure that the contribution amounts total the $12,550.

  • fxu
    fxu Member Posts: 3 Newcomer
    https://community.freetaxusa.com/discussion/comment/4245#Comment_4245

    Yes, those contributions add up to $12,550. But the question remains, do I count the contributions I did to my personal Roth IRA + the ones to my Roth 401k (which ended up being rolled over to my personal Roth IRA)?

  • DaveT
    DaveT Member Posts: 36 Level 5

    Yes. They would be combined since the Roth 401K was rolled over into your existing Roth IRA.

  • fxu
    fxu Member Posts: 3 Newcomer
    https://community.freetaxusa.com/discussion/comment/4249#Comment_4249

    Thank you. I had done my return (but not submitted) in TurboTax and it was showing up with an extra $3k in tax return. Had to do some googling and chatgpt. FreeTaxUSA wasn't clear when it came to a pre-tax 1099R to a Roth IRA rollover, so I was omitting the conversion basis (not the contribution).

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