In the article, How can I determine the basis for my non-deductible IRA? Karu stated, The total basis in a non-deductible IRA is the amount that you have contributed. He continued, When you begin taking distributions, you are only taxed on the pro-rata portion of that distribution. Any discrepancy, most likely, would have been caused by an input error.
Karu further noted to ask your account custodian for a schedule of the account transactions to review to find the cause of the difference.
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Michael H. Karu, CPA/CFF, Senior Member of Levine, Jacobs & Company, LLC, a Livingston-based accounting and consulting firm. He is qualified by the Superior Court of New Jersey, Family Part, as an expert witness and as an authority on business valuations, specifically for closely held or family-owned businesses. Additionally, he is Certified in Financial Forensics a Chartered Global Management Accountant, and a Certified Divorce Mediator.
Karu received his B.S. degree in Business Administration from The Ohio State University and holds professional memberships in the American Institute of Certified Public Accountants, the AICPA Tax Division and the AICPA Business Valuation, Forensics and Litigation Services Section, as well as the NJ State Society of CPAs. Karu is a published author of numerous articles seen in trade and consumer publications and has been a guest on radio and television shows.
Levine, Jacobs & Company, L.L.C. maintains memberships in the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. The firm prides itself on its teamwork abilities where every account receives the talent and expertise of the whole firm.
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