Roth Withdrawal Question
We have a client who is wanting to take out money from his IRA. He has contributed $43,176.50, but according to the company’s website after the sales charge was taken out he has contributed $40, 023.65. Which amount can he take out without tax or penalty?
Permalink Submitted by Alan - IRA critic on Tue, 2019-10-01 00:24
43,176.50. That is amount originally contributed and that is the amount the custodian should report on Form 5498. The only good thing here is that gains of almost 8% will not actually be Roth gains, since those gains will go to replacing the original contribution basis.