Do I need to file taxes for an early Roth IRA withdrawal of my 5-year account even if doesn't exceed my overall contributions?

Forum|Forum|1 year ago
February 27, 2025
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Best answer by RachelW33

Yes, you should include the Roth IRA withdrawal on your tax return.

You should receive a Form 1099-R for your Roth IRA withdrawal. The distribution will be reported on Line 4a of your 1040 and the taxable amount (zero in your case) on Line 4b. As you mentioned, as long as you haven't removed more than you put in, your distribution will be tax free.

Please see IRS: ROTH Distributions

RachelW33Answer

Yes, you should include the Roth IRA withdrawal on your tax return.

Please see IRS: ROTH Distributions

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Opus 17

Employee

Yes, you MUST include this on your tax return, not "should."

Under the law, all income is assumed to be taxable unless you prove otherwise. You need to actually file the return and sign it (or sign it electronically), which will certify for the IRS that all the facts and figures are correct, including your calculation about Roth contributions and withdrawals. Even though the IRS theoretically has the IRA records to figure it out on their own without your signature, they don't give you credit for any calculation you don't put in writing and sign your name to. If you leave it off your return, you WILL get a tax bill with interest and late fees.