[quote=ucodegen]The problem is that you have to take the brokerages record as gospel, and I have had a problem on a Rollover that I had to correct. Not all brokerages may create the problem that I had (was the source not destination acct) and it probably depends which source has the post-tax(for likelihood for it to occur). The IRS takes the brokerage’s numbers over yours. Fore-burned, forewarned. It is not guaranteed that you will have the same problem as I.
Using your numbers, what happened was that the post tax contrib of $50,000 became 0/500,000 non taxable, instead of 50,000/450,000. I caught it fairly quickly though.[/quote]
There was nothing for you to catch. The only brokerage numbers that are important are the FMV of the accounts as of 12/31 of the year prior to distribution. The brokerages do not report cumulative deductible or non-deductible contributions. That’s taxpayers’ responsibility. Those cumulative non-deductible contributions are supposed to be reported on tax returns every year (on form 8606), even if no new non-deductible contributions have been made for the tax year.
