I took $5,000 Distribution from Roth-IRA. When I entered the $5,000 into TurboTax, I entered the 7. Distribution Exemption code T. The Roth was created in 2018. TurboTax asked if the Roth was created prior to 2016, I said no, and my taxes owed increased by $1,100.
I thought money I took from a Roth was after taxes, tax free ? Why would I have to pay $1100 taxes on after tax money withdrawn from Roth ! ?
