All,
I have a question about how to calculate IRA basis. I contributed $2k and rollover $3k from 401k to this IRA in 2001. My AGI at 2001 is $63k. Is my IRA basis $5k or just $2k? Please help! Thanks.
2007-02-19 02:55:59 · 3 answers · asked by kev 1 in Business & Finance ➔ Taxes ➔ United States
It looks like $2000.00.
You were over the income limit to deduct the $2k in 2001 so that would have been a non-deductible traditional. 401k monies rolled over are generally pre-tax so that doesn't count towards the basis.
2007-02-19 04:18:40 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
You will only have a basis in your traditional IRA if you have ever made contributions to the IRA which you did not deduct on your tax return. If you did this, you should have filed a Form 8606 with your tax return for the year in which you made the nondeductible contribution, and your most recent Form 8606 should show your basis.
To simplify, your basis will be the total of all contributions you made to your traditional IRA which you did not deduct on your tax return, not including your 401(k) rollover. The rollover will not be included in your basis.
2007-02-19 07:06:37 · answer #2 · answered by figment_usa 5 · 1⤊ 0⤋
$2K. The rollover is from previous years.
2007-02-19 03:16:35 · answer #3 · answered by Ovrtaxed 4 · 0⤊ 0⤋