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February 25, 2025
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Should there be an Roth IRA early withdrawal penalty if the withdrawn amount is less than I've contributed?

  • February 25, 2025
  • 2 replies
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I've totaled the amounts I've contributed over the years and I am confident that I have not withdrawn more than my contribution amount.
    Best answer by Opus 17

    Did you run all the steps of the interview or did you exit early?  When entering a 1099-R from a Roth withdrawal, you must keep hitting continue to run all the steps of the interview.  You will eventually be asked for the total of prior year contributions and conversions, and prior year withdrawals.  (Any current year contributions are entered in the Roth IRA section on the deductions page.)  If your withdrawal is less than your current balance of contributions (contributions minus previous withdrawals) it won't be taxable, but Turbotax doesn't know this unless you give it the details. 

    2 replies

    fanfare
    Employee
    February 25, 2025

    You must take into account the 5-year rule.

    How old is your Roth IRA.?

     

    @bboyritus 

    Opus 17Answer
    Employee
    February 25, 2025

    Did you run all the steps of the interview or did you exit early?  When entering a 1099-R from a Roth withdrawal, you must keep hitting continue to run all the steps of the interview.  You will eventually be asked for the total of prior year contributions and conversions, and prior year withdrawals.  (Any current year contributions are entered in the Roth IRA section on the deductions page.)  If your withdrawal is less than your current balance of contributions (contributions minus previous withdrawals) it won't be taxable, but Turbotax doesn't know this unless you give it the details.