Question

Roth

Forum|Forum|3 years ago
April 17, 2023
1 reply
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I opened a Roth IRA in 2022 and then took a full distribution in the same year, 2022. The account had actually suffered losses and was les than my initial contribution.

Do I have to pay an early withdrawal penalty on the distribution if I opened and closed the account in the same year?

D

DanaB27

No, you can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Make sure you enter the Roth IRA contribution in the IRA contribution section.

Open your return
Click “Deductions &Credits” on the top
Click "I'll choose what to work on"
Scroll down to “Traditional and Roth IRA Contributions” and click “Start”
Select “Roth IRA”

To enter Form 1099-R:

Click "Federal Taxes" on the top and select "Wages & Income"
Click "I'll choose what to work on"
Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)"

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