Question

I withdrew 5000 from the principal amount of my Roth, which should be non-taxable. When entering my 1099-R it is calculating tax. How do I fix?

Forum|Forum|6 years ago
February 27, 2020
2 replies
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TurboTax Premier Online

Is there a taxable amount in box 2. Also, what is the code in Box 7. I expect it should be a T or J.

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DaveF1006

it may be a penalty tax because some of the withdrawal may have involved interest earned on the earnings. You'll be penalized for withdrawing any investment earnings before age 59 ½. The IRS stipulates that you cannot withdraw earnings tax-free until it’s been at least five years since you contributed to a Roth IRA account.

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