Do I need to report my Roth IRA on my taxes?

Hey everyone, I know this might be a dumb question, but I just want to make sure I’m doing everything right.

I opened a Roth IRA last year and put in the maximum contribution. I didn’t take any money out. Do I need to report this on my taxes? Or do I only deal with taxes when I withdraw the money later?

You don’t need to report Roth IRA contributions on your tax return. But if your income is low enough, you might qualify for the Retirement Saver’s Credit. If that’s the case, you’d want to include it on Form 8880 when you file.

Just make sure you didn’t contribute more than allowed based on your income. If you stayed within the limits, you’re all good. And great job maxing it out!

Unless you contributed more than the limit, you don’t have to report your Roth IRA contributions on your taxes. Since you didn’t withdraw anything, there’s nothing to worry about for now.

Your IRA provider will send you and the IRS a Form 5498 showing how much you contributed. Other than that, there’s nothing you need to do—just make sure you didn’t go over the limit.

Not a dumb question at all! Congrats on starting your Roth IRA. Here’s the short answer:

  1. No, you don’t need to report contributions on your taxes.
  2. When you withdraw later, as long as it’s a qualified withdrawal (you’re over 59.5 and have had the account for at least 5 years), you won’t owe taxes then either.

@Poe
Just to add—qualified Roth IRA withdrawals do get reported on your tax return, but they show as non-taxable. The full amount is listed, but the taxable portion is zero.

Taylor said:
@Poe
Just to add—qualified Roth IRA withdrawals do get reported on your tax return, but they show as non-taxable. The full amount is listed, but the taxable portion is zero.

Yep, and if they qualify for the Retirement Saver’s Credit, they should report their contribution to get that benefit too.