taxable ira's

[bstaxes]

Just got 2 clients who had withdrawals from their IRA's. One to buy a house (not 59 1/2 yet) and the other having a normal distribution. Both worked for large companies who had pension plans and their contributions were not deductible, therefore I believe some of the withdrawal or distribution is not taxed. Neither client has filed 8606 forms. Is there anyway I can figure out what was contributed after tax? I have thought about asking the holders of the IRA accounts for histories of the account showing contributions and interest.

This really is a screwed up year. Many stupid and dumb mistakes made by banks.

Thanks for any help.

[neilbrink]

Just got 2 clients who had withdrawals from their IRA's. One to buy a house (not 59 1/2 yet) and the other having a normal distribution. Both worked for large companies who had pension plans and their contributions were not deductible, therefore I believe some of the withdrawal or distribution is not taxed. Neither client has filed 8606 forms. Is there anyway I can figure out what was contributed after tax? I have thought about asking the holders of the IRA accounts for histories of the account showing contributions and interest.

This really is a screwed up year. Many stupid and dumb mistakes made by banks.

Thanks for any help.

It is up to the the individual to keep track of the amount each year that is contributed to an IRA that is not deductible. It is calculated each year when the tax return is completed. ATX has a great worksheet that is used to calculate that amount, and that basis is then forwarded to the next year so the total basis is up to date when he starts to withdraw from the IRA. You will need to look back on previous tax returns where he took a non-deductible IRA and total them to get your basis now. Hope that helps. Good luck.

[bstaxes]

The TP did not keep the returns from the time they made contributions. It is over 10 years ago. They were not my clients at the time. Neither have any idea of what was contributed. The one client lost all the returns when he became divorced. The other client's husband use to make the contributions to her account (spousal), he is deceased.