Records to Keep to Protect After-Tax Basis

A distribution from your traditional IRA could cost you if you’re not aware of your responsibilities. Many investors are saving up for their retirement in workplace accounts like 401(k)s. Those administrators handle tasks that IRA custodians don’t. And it’s up to you to take charge and keep track of your hard-earned money, so you’re not taxed twice. Denise Appleby is known as “The IRA Whisperer.” The Morningstar contributor has written about how to protect your IRA from costly mistakes.

Don’t Pay Taxes Twice: Here’s How to Save Thousands on IRA Distributions https://www.morningstar.com/personal-finance/dont-pay-taxes-twice-heres-how-save-thousands-ira-distributions

On this episode:

00:00:00 Welcome

00:01:28 What is a Traditional IRA and How It’s Funded

00:02:29 How IRA Withdrawals Are Taxed When Accounts Hold Taxable and Tax-Free Dollars

00:05:36 What IRA Custodians Don’t Track and Why Investors Should 

00:09:05 What to Check on Form 1099‑R and Why Form 8606 Matters

00:12:02 How to Fix IRA Mistakes

00:13:44 What Records to Keep Track of to Avoid Double Taxation

Watch more from Morningstar:

Elevate Your 60/40 Portfolio With These Simple Tweaks

Why REIT ETFs Still Work as Real Estate Slumps

How to Make the Most of Your IRA in 2026

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