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Tax Law (Questions About Taxes)/Basis on Rollover to a Roth IRA


In 2013, I decided to rollover my traditional 401(k) to my Roth IRA. I had this 401(k) with my prior employer before changing jobs 7 years ago. So, after 7 years I rolled it over to my Roth IRA. It was a direct rollover for which I received a 1099-R with the following: Gross distribution 2,383, Taxable amount $2,383 and Distribution Code G (Direct Rollover).  All other boxes in the 1099-R are blank.  I’m preparing my taxes, and one of the questions I get is: “Enter your basis in the $2,383 amount that was rolled over from qualified retirement plan to a Roth IRA in 2013. If your basis in the amount is zero, leave the box blank”.  Would you please explain what do they mean by “basis”, and what, in my case would be the basis that I need to enter? I really appreciate your guidance. Thank you.


Thanks for your question.

Tax basis is the amount of your contributions that you have paid tax one.  In a typical 401(k) or traditional IRA your contributions are not taxed, so the amount of contributions are your basis.  In your case, the taxable amount is your basis, $2,383.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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