Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
Roth IRA Mutual Fund Investments:
1998 - 2001 contributions $ 8,000.00, 2002 contributions $ 750.00,


Thus, having peeked ahead, I can sum up that your basis in the Roth IRA is $8,750.00.

1998 - 2001 reinvested dividends & gains $ 700.34,
Total cost of Investments = $ 9,450.34


And on a clear day the sky is blue. The total cost of your investments in any IRA, Roth or otherwise, is irrelevant. The only thing that matters is the amount contributed (and, in the case of a Roth, the amount converted from traditional).

late March 2002 total withdrawal used as partial down payment for first time home (condo) buyer. Proceeds: $ 8,548.41.
total loss $ 901.93.


As noted before, your loss is $8,548.41 - $8,750.00 rather than your calculation.

does any of this get reported anywhere on the 2002 return?

You report the Roth distribution in Part III of Form 8606. You'll have zero taxable income and zero penalty from the distribution. Since you've not recovered the amount of your contributions, there's no need to do the penalty waiver form.

is there any loss recognized anywhere?

Miscellanous itemized deduction on Schedule A, subject to the 2% of AGI exclusion.

Phil Marti
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement