Roth withdraw is showing taxable, I w/drew $5K that was invested 10 years ago. It should not be taxable. How do I correct this?

Forum|Forum|1 year ago
February 17, 2025
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MinhT1

Withdrawals of Roth IRA contributions are not taxable.

You have to indicate this in TurboTax.

In TurboTax Online, after you have entered your form 1099-R, TurboTax will take you back to the summary page titled Your 1099-R Entries.

On that page, click Continue and follow the TurboTax interview until you arrive at the page titled Enter Prior Year Roth IRA Contributions where you can enter the amount of your past contributions.

If you withdraw an amount equal or less than your contributions, it would not be taxed.

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shufinaAuthor

Thank you so much. 1099R is showing code J which seems to indicate that I took it out before the 5 year holding period (I disagree with this and I guess I need to revert to Vanguard for correction) - I am just shy of 59.5 so they are considering it an early withdraw. Thank you again.