qbteachmt
Level 15
04-12-2022
03:53 PM
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"the creation of basis prevents all of the 1098-R distribution from being taxable?"
Any distribution or contribution from a tax-deferred account that also has basis will have the taxable amount prorated, because Basis = already taxed. This is why people do not understand why a Backdoor Roth is taxable, sometimes.
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Don't yell at us; we're volunteers
Don't yell at us; we're volunteers