What is the basis of my Roth IRAs if I made an early withdrawal?

CesarL_3
CesarL_3 Member Posts: 1 Newcomer
in Filing my taxes

I am stuck at the "Enter your basis in Roth IRA contributions" section of my tax form.


In 2024 I closed and did an early total withdrawal of two Roth IRA accounts (One with a $2,142.44 distribution with $0 federal income tax withheld and another with $1,810.90 distribution and $181.08 federal income tax withheld)

My total deposit for both accounts was $3,489.94 and I withdrawed a total $3,953.34.

Does this mean my basis is negative? I dont know how to find the basis in my case.

Thank you.

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 581

    Hello CesarL_3,

    Your basis is your original deposits or contributions into the Roth IRA. If you aren't positive about your basis, you can look for prior year Forms 5498, which will confirm your contributions for each year into the Roth.

    Your basis is not negative. Since you withdrew more, that means you had some earnings, which are taxable.

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