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June 6, 2019
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I open and made contributions to a ROTH IRA in 2017 and then closed it in 2017. Why is the entire distribution taxable and not just the earnings?

  • June 6, 2019
  • 3 replies
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Best answer by dmertz

You need to enter the Roth IRA contribution to get credit for the contribution basis so that it reduces that taxable amount of the distribution.  Enter it under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.

3 replies

Employee
June 6, 2019
Was the contribution made in 2017 made for 2017 or was it instead made for 2016?
dmertzAnswer
Employee
June 6, 2019

You need to enter the Roth IRA contribution to get credit for the contribution basis so that it reduces that taxable amount of the distribution.  Enter it under Deductions & Credits -> Retirement and Investments -> Traditional and Roth IRA Contributions.

June 6, 2019
It was made in 2017.  It doesn't make sense to tax me on money I was already taxed on.