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

Question

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.

Henry · Answer

Hi Lombard, you'll generally be prompted to enter your Roth IRA basis after entering the 1099-R information in the software. When you are done inputting all of your 1099-Rs, click on Continue. As you proceed, you'll come to a screen that asks for your basis in Roth IRA contributions. The amount you enter there will flow to Form 8606, line 22.

You can verify that Form 8606 is generating correctly by going to your Summary page, scrolling to the bottom, and selecting View to see your federal tax documents.

Lombard · Answer

I have a premature withrawal from a Roth IRA, the amount was less than my basis but I can't find where to enter my basis. Does anyone know where to enter your basis? I need this amount to show up form 8606 line 22. Thank you!

MatthewD · Answer

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.