Roth IRA Distributions
If a Taxpayer withdraws money from his Roth IRA , can he use his basis in his Roth 401K in computing his overall Roth basis to determine if the Roth IRA withdrawal has sufficient basis to make the withdrawal non taxable?
If a Taxpayer withdraws money from his Roth IRA , can he use his basis in his Roth 401K in computing his overall Roth basis to determine if the Roth IRA withdrawal has sufficient basis to make the withdrawal non taxable?
Permalink Submitted by Alan - IRA critic on Thu, 2021-04-01 16:18
No, these are two totally separate Roth accounts under separate sections of the tax code. But if you mean that Roth 401k had been rolled into the Roth IRA, then the Roth 401k basis would be treated as regular Roth IRA contribution basis because the former Roth 401k would then be merged into the Roth IRA basis.