Roth IRA - Tax Forms, Records, Etc.

[BrendanP]

Hi all,

I had some quick questions about RothIRAs.

My understanding is that I DO NOT need to submit anything for the the Roth IRA with my tax forms . I use H & R Block to file my taxes online and they used 2 different worksheets to check my contributions - but it doesn't appear that they are actually filed with the form.

I also want to know what records I personally should keep over the years.  My wife's RothIRA was started many years ago by her father, and I do not know the contributions, etc. and would have to contact Fidelity to get all of the info.

Or do the companies keep all of the records, and I just don't even need to worry about this during my building phase?

Thanks in advance!

[Spork]

If you are planning on something like a Roth ladder... you will want to know the total amount of contributions (as opposed to growth/dividends).  You are able to withdraw the contribution amounts penalty free at any age.  Growth/dividends may be withdrawn tax-free, penalty-free at age 59.5.

In other words: The main records you will want is amount of contributions.

[financepatriot@gmail.com]

The companies keep all the records.  However, if you use multiple brokerages like I did over the years, you will have some work on your hands when you attempt a Roth Principle rescue (I wrote about my experience on my blog). 

I don't think there is much you need to do in tax software other than entire the contributions you made for the year.  Distributions are a bit more involved, but aren't that bad from my experience.  At some point I had to check a box on the software that denoted the distributions were a "return of contributions."

Hope that helps.