I got 1099-R for distr from Roth IRA. I took the distribution from the contributions and not the gains. Box 2b is checked. How to indicate that this is not taxable amt?

Forum|Forum|2 years ago
March 17, 2024
1 reply
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There is no easy way to determine what is considered gain and what is considered contribution in a Roth IRA.

TurboTax Deluxe Online

Best answer by fanfare

Use Form 8606 Part III to adjust for your basis from prior contributions.

When it is not taxable, you have to adjust your own records for basis accordingly.

@bysa926775

DavidD66

As you go through the 1099-R Entry screens in TurboTax, after entering the information on the form, you will be asked a series of questions including: "Owned Any Roth IRA for Five Years?". You will then be prompted to "Enter Prior Year Roth IRA Contributions". As long as you owned a Roth IRA for at least five years and your prior year contributions are greater than the amount of your distribution, TurboTax will treat it as a non-taxable return of basis.

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bysa926775Author

Thanks for your response. As per this blog, there is no 5 year requirement nor age restrictions to withdraw contributions. Contributions can be taken out any time from a Roth IRA. I am under age 59.5.

Please confirm. Thanks

https://blog.turbotax.intuit.com/retirement/roth-ira-withdrawal-rules-and-penalties-53233/

I am not taking any distribution from the gains. I am just withdrawing the contribution amount which is well over the amount of my distribution (based on the contributions so far).