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Author: Fuskie Big funky green star, 20000 posts Top Favorite Fools Old School Fool Ticker Guide SC1 Red Winner of the 2010 Rule Breakers Challenge Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25234  
Subject: Re: Easy 401k & IRA Tax Question Date: 6/23/2004 3:43 PM
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As I presently understand it the 401k contribution will show up on the 1040 form under a section specifically asking about 401k contributions. The Roth, however, I am a bit more unsure. It would appear as though I don't need to do any accounting for this until I withdraw. Am I correct?
Yes, you are correct. Because Roth contributions are post-tax, they do not affect your tax liability in the year you make them. Since the earnings can be distributed tax free upon retirement (when you become of age), there is no tax liability then either. Still, your RIRA broker will send you and the government a statement each year detailing the contributions made just so everyone can keep track.

Fuskie
Who guesses there may be other reasons for this statement, but can not think of them at the moment...
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