Roth IRA Contribution Deduction, 8606 and Re-Contribution??
Good morning,
I contributed to a Roth IRA 4 out of 6 years (2012-2017) and have a 5498 from each of the contribution years. Due to being unfamiliar with investing and whatnot and saw I could remove contributions without issue I ended up removing all of the funds from the account and it is now closed. The value of the account was slightly less than the total amount I had contributed.
I was wondering if I can subsequently re-contribute my cost-basis into a Roth IRA? And if I am required to fill out any forms like the 8606?
The contributions have just sat in cash in my bank account ever since.
Thanks!
Permalink Submitted by Alan - IRA critic on Thu, 2022-07-28 17:35
You can only return the funds if you are still within 60 days of the distribution, but it sounds like the withdrawal was much farther back. All you can do now is to start making new Roth contributions for 2022 and beyond if your income is not too high to qualify. The remaining Roth basis from before that exceeded your distribution can be retained and added to your basis from new contributions you might make. Again, you cannot recontribute the dollars you withdrew, and would have to start over, but you would have some extra basis that would carry over. Check your Form 8606 for the year of your distribution. The basis that you still have is the amount that your line 22 exceeded line 19. That’s small comfort for loss of your Roth IRA balance when you apparently did not desperately need the funds that you withdrew. If you start over with new contributions you do not have to file any forms, just continue to retain all 5498 forms that you receive.