Investing

Investing Blog Roundup: Tracking Roth IRA Basis — Save Your Form 5498!

Recently I’ve received emails from a few different readers on the topic of tracking basis in a Roth IRA. That is, with a Roth IRA, you can remove contributions tax-free and penalty-free at any time, but how do you know (and how can you prove to the IRS) how much you have contributed over the … Continued

Recently I’ve received emails from a few different readers on the topic of tracking basis in a Roth IRA. That is, with a Roth IRA, you can remove contributions tax-free and penalty-free at any time, but how do you know (and how can you prove to the IRS) how much you have contributed over the years?

The easiest answer is to keep the Form 5498 that the brokerage firm sends you every year. It reports all the contributions and conversions for the year in question.

Recommended Reading

Thanks for reading!

Previous

Do you know how much your mutual funds, index funds and ETFs are costing you?

Back to Investing
Next

Why It Would Be Ludicrous To Invest In These Model Portfolios