The ordering is:
You can always withdraw contributions (but not earnings) that you made to your Roth IRA tax and penalty free at anytime. Additionally, the Ordering rules for withdrawals from a Roth IRA are: first from regular contributions, then from Conversion and rollover contributions, on a first-in, first-out basis and finally from Earnings on contributions.
While according to what you have written, you appear to meet the qualifications, you have a code J on your 1099-R. Code J indicates that there was an early distribution from a ROTH IRA.
A qualified distribution from a Roth IRA is tax-free and penalty-free, provided that the five-year aging requirement has been satisfied and one of the following conditions is met:
- Over age 59½
- Death or disability
- Qualified first-time home purchase
Code J means the withdrawal is not qualified. TurboTax should ask you for the amount of contribution and rollovers you made to the account and the amount of previous withdrawals, so the program can tell if you are withdrawing contributions, rollover contributions, or earnings.
