Permalink Submitted by Edward Czapor on Mon, 2009-04-20 15:02
A Roth contribution is not reported on Form 1040. It is the individuals responsibility to keep track of contributions and Roth basis. Good tax software should do this for you. A contribution by conversion will result in the issuance of a 1099-R.
All Roth and other IRA contributions will still be reported to the IRS on Form 5498 by the IRA custodian. Non deductible contributions are reported on Form 8606 filed with the 1040.
Permalink Submitted by Alan Spross on Mon, 2009-04-20 19:24
The only exception to not reporting regular Roth contributions would be the “Savers Credit” Form 8880, where a regular Roth contribution would be reported by those eligible for the credit. http://www.irs.gov/pub/irs-pdf/f8880.pdf
Permalink Submitted by Edward Czapor on Mon, 2009-04-20 21:57
Good point Alan, the Savers Credit can be easily overlooked by those who qualify, particularly if by a Roth contribution. Some may fail to inform their accountant or tax preparer of a Roth contribution since it is non-deductible and not reported on the tax return. This could cause a loss of the Savers Credit, and a possible future problem should there be any non-qualified distributions from the Roth.
Permalink Submitted by Edward Czapor on Mon, 2009-04-20 15:02
A Roth contribution is not reported on Form 1040. It is the individuals responsibility to keep track of contributions and Roth basis. Good tax software should do this for you. A contribution by conversion will result in the issuance of a 1099-R.
All Roth and other IRA contributions will still be reported to the IRS on Form 5498 by the IRA custodian. Non deductible contributions are reported on Form 8606 filed with the 1040.
Ed C.
Permalink Submitted by Alan Spross on Mon, 2009-04-20 19:24
The only exception to not reporting regular Roth contributions would be the “Savers Credit” Form 8880, where a regular Roth contribution would be reported by those eligible for the credit.
http://www.irs.gov/pub/irs-pdf/f8880.pdf
Permalink Submitted by Linda Randazzo on Mon, 2009-04-20 21:00
Thank you both
Permalink Submitted by Edward Czapor on Mon, 2009-04-20 21:57
Good point Alan, the Savers Credit can be easily overlooked by those who qualify, particularly if by a Roth contribution. Some may fail to inform their accountant or tax preparer of a Roth contribution since it is non-deductible and not reported on the tax return. This could cause a loss of the Savers Credit, and a possible future problem should there be any non-qualified distributions from the Roth.