My financial advisor says I need a form filed by my CPA saying I am drawing from the principal and not the earnings of my Roth IRA to not be taxed. Can I get that here?

Forum|Forum|1 year ago
November 21, 2024
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Best answer by dmertz

This is done with TurboTax automatically preparing Form 8606 Part III to calculate the taxable amount of nonqualified Roth IRA distributions. You'll need to make sure that you have provided TurboTax with the correct contribution and conversion basis information upon entering the Form 1099-R that reports the distribution from the Roth IRA.

xmasbaby0

Employee

Have you tried to contact the financial institution that holds the retirement account to ask them for such a form or statement?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Opus 17

Employee

There is no such form.

When you file your tax return, you self-certify that you are drawing from contributions, based on your own accurate financial records. You don't submit any proof with your tax return. If you are audited, you must be able to prove, using your own reliable records, that you were only withdrawing contributions. Records that will help prove this include copies of form 5498 (showing contributions made each year) and any prior 1099-R forms showing prior withdrawals.

Even if you had a CPA who would write such a letter for you, that would not be proof if you were audited, you would still need to show the IRS your records. (Although, if you did have a CPA, presumably you pay them to help you keep those records to show the IRS.)