Do you have to report 1998 Roth Contributions?

[Guest swilsonw]

I know you can report a 1998 Roth contribution on Form 8606, but it does not look like a requirement. If reporting you Roth contribution is not a requirement, how will the IRS keep track of basis? Thanks. Shane.

[Kathy]

You do not need to report your regular Roth contributions on the Form 8606. The financial organization where you open your Roth will notify the IRS of your contribution by way of a Form 5498. However, it is still the IRA holder's responsibility to keep track of contributions and conversions so KEEP YOUR STATEMENTS AND PAPERWORK!!!!!

[Guest nelsonpc]

How will the my 1998 Roth IRA contributions be taxed? The financial institution that I send my Roth IRA contributions to is Vanguard. They, in turn, will send Form 5498 to the IRS to report my 1998 Roth IRA contributions. Once the IRS get this, will the IRS then send Vanguard the amount of tax and then Vanguard will deduct this from my account? Is this how it works? For your information, my Vanguard account currently shows the $2K I contributed with no evidence of any taxes deducted. Thanks for your help.

[Guest Paul McDonald]

Contributions to a ROTH IRA are not taxed by anyone. Contributions are to be made from your after-tax wages (your take home pay) hence the taxes were most likely already withheld by your employer. The money in the Roth IRA grows income tax free and if you follow the rules, withdrawels may be made free from federal income tax.

You better call Vanguard, visit the Roth IRA web site or seek other information to understand just what, where, and why you put $2,000 where you did.

[Guest Goldy]

Kathy,

Thanks for your answer. That's the answer that I was guessing. Do you have any support (i.e., IRS Pubs, Regulations, etc) for your response?