Question

ROTH IRA Distribution

Forum|Forum|6 years ago
October 15, 2019
1 reply
0 views

Hello! I have entered the 1099-R for early ROTH IRA distribution. Where does Turbo Tax ask for the amount of contributions for this account? How else will the return show the basis for ROTH?

TurboTax Home & Biz Windows

macuser_22

Employee

You can always withdraw your own Roth contributions tax and penalty free.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

One of the followup questions will ask for your prior year** contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

Note: **Prior year - any current year Roth contributions should be entered into the IRA contributions section. They will not show up in the prior years contributions but will be accounted for on the 8606 form that calculates the taxable amount.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

J

JOSEPHATL

My ROTH account is only 4 years old. I called to make a withdrawal and it was explained to me that I can withdraw any of my contributions without any taxes or penalties, so long as I don’t withdraw any of the earnings. I recieved by 1099-R, I enter the amounts and codes into TT, and it takes about 25% out for taxes. What am I doing wrong?

I called the company to see if perhaps the 1099-R form was sent with incorrect data on it and was told that I may not have to enter the information on it as box 2a was left blank.

I was under the assumption that I had to report everything that was sent to be by any financial institution.

Please advise. Do I need to claim the withdrawl I made, regardless of the age of the Roth?

macuser_22

Employee

@JOSEPHATL - Did you enter it as in my answer above? Did you enter the followup questions about your prior contributions?

What code is in box 7 on your 1099-R?

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**