I have a Roth IRA for more than 5 years. I can w/draw w/out penalty any amount that I’ve contributed. What form is needed during taxes to not be penalized 10% (I’m 53)?

Forum|Forum|1 year ago
August 25, 2024
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TurboTax Deluxe Online

Best answer by dmertz

When you enter the code-J Form 1099-R into TurboTax, TurboTax will ask you the amount of the contributions made for prior years. After entering the Form 1099-R and your contribution basis, TurboTax will prepare Form 8606 Part III to calculate the taxable amount (which should be zero if your distributions were less that your contribution basis). Only the taxable amount, if any, is subject to penalty.

Bsch4477

Employee

The withdrawal will be reported on the 1099-R you will receive from your financial institution. TurboTax will give you the opportunity to exclude the penalty.

NCPERSON1

@eod-eric-expat just for clarification, CONTRIBUTIONS can always be distributed without tax and without the 10% penalty without meeting the 5 year requirement.

The rule are (assumes under 59.5 years old):

Roth opened less than 5 calendar years

Contribution: no penalty and no tax liability

Conversions*: 10% penalty and no tax liability

Earnings: 10% penalty and tax liability (exceptions apply to the 10% penalty)

Roth opened at least 5 calendar years

Contribution: no penalty and no tax liability

Conversions: no penalty on contributions made at least 5 years ago; *10% penalty for contributions made in the last 5 years no tax liability

Earnings: 10% penalty and tax liability (exceptions apply to the 10% penalty)