Yje wife is 73 and I am 69. She has an IRA that was strated by one of the companies she worked for before she retired @ 62. It rolled over @$15,500 and the mutual fund took 5 1/2% or about $14,800. It built back to $15,600 and was rolled into anouther fund which is now worth $14,600 So the questions are: Since she matched the funding of the company in the beginning, is her basis for starting $15,600 ot $7,650? Can a loss be claimed when cashing out? What is the basis for determining loss/profit-$7,650, $15,600 or $14,800? Since this has loss money we're thinking in terms of cashing out completerly and rolling the cash into our IIOT. Anyone care to comment? R Wink
RE: IRA Value
Feb 02, 2015
1 Replies
I'm assuming that this was a 401(k) or 403(b) that she and her employer contributed to while she was employed. If this is the case, then the basis is zero, because she received a tax deduction for the amount of her contributions at the time she made them. If she cashes out in 2015, then she will receive a 1099-R from the IRA next January or February stating the amount of the distribution, and it will be fully taxable.
Dave
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