ROTH IRA taxable portion – Query
Having difficulty determining the taxable portion of my ROTH distribution for 2013. These distributions occurred when I was over 59 1/2 years old.
Here is the summary of facts for 2013:
1) I distributed from my “traditional” IRA account – $50,000 FMV at 12/31/2012 $1,000,000
2) I distributed from my ROTH IRA $300,000, FMV at 12/31/2012 $400,000
2a) I have original ROTH contributions for the periods of 2003 through 2006 totaling $14,000, (FMV at 12/31/2012 of $40,000 included in the $400,000 FMV, above)
2b) I had a IRA to ROTH conversion in 2010 for $200,000 which was taxed, (FMV at 12/31/2012 of $360,000 included in the $400,000 FMV, above)
I am thinking that the following is taxable,
1) The traditional IRA distribution at $50,000
2) My ROTH distribution would be tax-free, since my account was funded and open more than five years ago. My conversion being less than five years ago does not have any negative effect.
Am I correct?
Permalink Submitted by Alan - IRA critic on Sat, 2014-04-12 22:44
Yes, correct. Your traditional IRA contribution would be less than fully taxable if you have any basis as indicated on Form 8606.
Permalink Submitted by Greg Yup on Sun, 2014-04-13 05:06
Thank you for your reply.
Permalink Submitted by Greg Yup on Sun, 2014-04-13 05:06
Thank you for your reply.
Permalink Submitted by Greg Yup on Sun, 2014-04-13 05:08
Thank you for your reply