Roth IRA withdraw
Hi, I put in $ 200,000 in a Roth IRA from a pay out at work back around 2007. This was allowed for airlines employees. I have since then increased the value to $ 560,000 and would like to pull out $ 130,000 to pay off my house note. I have a statement from Fidelity saying I put in $ 175,000, but not one from Schwab saying I put in $ 25,000 with them.
Since then I Have taken out $ 25,000 from Fidelity Which I put back in 30 days later (Around 2011) and rolled the Schwab Roth IRA Funds over to Fidelity.
What paper Work or Records do I need if I pull out the Funds to pay off my house? I am 58 years old and do not want to get hit with any taxes or penalties because of some rules I am unaware of.
Another concern is the CPA who did my taxes when I took the $ 25,000 out for 30 days put it on the tax return but did not put down It was put back in the Roth. (I do not use them any more).
Thanks in advance, Drex N
Permalink Submitted by Alan - IRA critic on Thu, 2015-08-13 22:03
Until your Roth is qualified upon reaching 59.5, you need to show your basis in regular and conversion or rollover contributions on Form 8606. It is pretty obvious your distribution will be tax and penalty free, but you may not have the documentation needed to enter the correct figures on Form 8606. Did you retain Form 5498 that reported all your Roth contributions? The 200,000 was a rollover contribution, did you also make regular Roth contributions or do other Roth rollovers or conversions? These would all show up on the 5498 forms that were issued by your Roth custodian every May after a contribution year.