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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: El Gringo on February 23, 2015, 09:44:54 PM

Title: IRA info for tax filing
Post by: El Gringo on February 23, 2015, 09:44:54 PM
When filing my taxes using H&R Block software, it prompted me "Tell us about Roth IRA contributions and distributions you had before 2014. When you enter this information, we'll create a history, which we’ll save for you so you won't have to reenter it next year. This could also save you money later."

I don't remember filling this out before. Is it necessary? Am I filing incorrectly if I don't include it? And how will it save me money?
Title: Re: IRA info for tax filing
Post by: MrMoogle on February 24, 2015, 01:12:02 AM
It's not necessary.  They just use it to keep track of contributions when you start withdrawing from your Roth.  You may have to include it if you've taken withdrawals, but I'm not sure.

TurboTax asks the same thing, and I've included it, just so I have another place it's kept in case I forget.  Since I can't make contributions, I haven't thought about it in except during tax time when it reminds me how much I have.