The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: Joel on August 04, 2017, 12:14:40 AM
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I'm beginning to explore the idea of withdrawing some of my Roth IRA contributions to help with a 20% house downpayment. What do I need to know from a tax standpoint? What do I need to file at the end of the year? Is it as simple as reporting the distributions on Line 15a of the 1040 and indicating they are not taxable?
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What do I need to file at the end of the year? Is it as simple as reporting the distributions on Line 15a of the 1040 and indicating they are not taxable?
Pretty much.
See the instructions for Lines 15a and 15b (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf).
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What do I need to file at the end of the year? Is it as simple as reporting the distributions on Line 15a of the 1040 and indicating they are not taxable?
Pretty much.
See the instructions for Lines 15a and 15b (https://www.irs.gov/pub/irs-pdf/i1040gi.pdf).
Yup. That's what I was reading and how I came to my conclusion.
How can one verify how much contributions they have actually made during their lifetime? That doesn't seem easy from Vanguard's website. The only way I can think of is based on my tax returns.
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How can one verify how much contributions they have actually made during their lifetime? That doesn't seem easy from Vanguard's website. The only way I can think of is based on my tax returns.
All those Form 5498 (https://www.irs.gov/pub/irs-pdf/f5498.pdf)s you received?
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How can one verify how much contributions they have actually made during their lifetime? That doesn't seem easy from Vanguard's website. The only way I can think of is based on my tax returns.
All those Form 5498 (https://www.irs.gov/pub/irs-pdf/f5498.pdf)s you received?
Yup. That has the info. I've been keeping those forms since 2012 since I rolled over to Vanguard. I've got Roth IRA Contributions from 2008-2011 where I do not have those forms anymore (and cannot access them online). Do you have any advice on how to go about obtaining those records? I have records from my budget software (YNAB) that appear to indicate how much Roth IRA Contributions I made in each year, but I would like to be certain.
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As long as you have written contemporaneous records that are correct, you should be fine. Form 5498's are the gold standard, but I didn't save mine, so one day I just called Vanguard and had them tell me the numbers over the phone and so all I have is an Excel spreadsheet. I'm not worried.