Social Security, IRA Basis, and Roth 5-Year Rule: Q&A #2521

May 24, 2025

Social Security, IRA Basis, and Roth 5-Year Rule: Q&A #2521

Jim and Chris answer listener questions on Social Security timing, the Earnings Test, nondeductible IRA basis, and the Roth 5-Year Rule.

(16:15) Georgette asks whether filing retroactively in December, with Social Security payments issued in January, ensures that all income—including the retroactive amount—will be reported on the following year’s tax return.

(28:00) A listener working in a State job who is eligible for a Social Security widow benefit asks whether large pre-tax contributions to 403(b) and 457(b) plans would reduce his earnings under the Earnings Test.

(42:30) The guys address whether IRA basis can be isolated from gains when converting a nondeductible IRA to a Roth.

(1:02:15) Jim and Chris respond to a listener seeking clarification on the 5-Year Rule for Roth IRAs, including how it applies to earnings distributions by original owners and non-spouse beneficiaries.

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