Definition
The adjusted closing balance is the fair market value of the assets at the end of the computation period plus:
- Any distributions from the account
- Transfers from the account
- Recharacterizations made from the account
As long as these occurred during the computation period
Referring Cite
TD 9056, IRS Form 5329
Additional Helpful Information
- NIA calculations and allocations must be based on the overall value of an IRA and the dollar amounts contributed, distributed or recharacterized to or from the IRA. As a result, the principal amount of regular Roth IRA contributions cannot be protected against adjustment for their pro rata share of net income, including any net losses, during the computation period
- See related definition Adjusted opening balance
