now!

Thanks to all who posted a reply.

AyJay

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ayjay wrote:

- quote -

Zero. You had a deduction and/or exclusion from income of
all amounts that were contributed.

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arlens[at]nospam.yahoo.com (ayjay) posted:

- quote -

As you acknowledge, you rolled your 401K into a traditional
IRA -- and, of course, there were only *before-tax*
contributions to the plan. And your question is?

Only after tax contributions would create a cost basis; all
of your (pre-tax) contributions were sheltered from taxes,
and you therefore have no cost basis. All distributions
will be taxable at ordinary rates.

Bill

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"ayjay" <arlens[at]nospam.yahoo.com> writes:

- quote -

The same as it would have been if you didn't do the rollover
-- the total of all non-deductible contributions ever made
to any traditional IRA accounts. If there have never been
any, basis is -$0-. And remember that non-ded contributions
become a pro-rata part of all your trad IRA accounts,
regardless of which trad IRA account you made the non-ded
contribution to. There is no way to segregate them.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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ayjay wrote:

- quote -

Your cost basis for this specific IRA account is zero unless
you have added to it by making an annual nondeductible
contribution.

--
Alan
http://taxtopics.net

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"ayjay" <arlens[at]nospam.yahoo.com> wrote:

- quote -

IRAs don't have a cost basis, because there's no capital
gains tax on withdrawals. They have a tax basis, which is
the amount of after-tax contributions. If all your IRA and
401K contributions were before-tax, then the tax basis is 0.

Note that for purposes of tax reporting, you do not
distinguish the rollover IRA from any of your other IRA
accounts. You treat all your IRA accounts as one combined
account. So if you made after-tax contributions to other
accounts, then that is the tax basis that must be used when
you start withdrawing.

--
Barry Margolin, barmar[at]alum.mit.edu
Arlington, MA

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"ayjay" <arlens[at]nospam.yahoo.com> writes:

- quote -

Zero

Phil Marti
Topeka, KS

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I rolled over a 401K to a traditional IRA in 2002. During
the life of the 401K I made before tax contributions to this
plan. What is the cost basis of the IRA now when I begin to
take distributions?

Thanks in Advance.

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