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February 23, 2025
Question

I was already taxed on the money put into roth ira - now being taxed again when withdrawing

  • February 23, 2025
  • 1 reply
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The contribution to my roth ira was aleady taxed - now being taxed again when withdrawing, why

    1 reply

    February 23, 2025

    If you are under retirement age, and withdrawing only contributions, you should not be subject to federal tax. If you are 59.5 or over, you can withdraw both contributions and growth tax-free (provided the Roth has been held for 5 years).

     

    You should have received a 1099-R. ‌Here is how to report it in TurboTax Online:

    1. Go to Wages & Income.
    2. On the Your income and expenses screen, locate and select the Retirement Plans and Social Security section, then select Start or Revisit next to IRA, 401(k), Pension Plan Withdrawals (1099-R).
    3. Answer Yes to Did you get a 1099-R in 2024?, then Continue.
    4. Select how you want to enter your 1099-R (import or choose Change how I enter my form to either upload it or type it in yourself) and follow the instructions.
    5. Answer the questions on the following screens, until you reach Enter Prior Year Roth IRA Contributions. Here, enter all the amounts you contributed prior to 2024.