@DaveF1006 I appreciate you weighing in. I think that would be true if I took a larger disbursement with interest that would be taxable, but I don't think that should be a taxable event according to my reading of 8606 and the IRS ordering instructions. According to line 19, 20, 21, I would think the math would go: 44K distribution - 10K homebuyer expense (line 20) = $34K. Of that, my contributions would come out first, which was $38K (line 22). According to line 23, the difference would be zero.
When I do this in TurboTax, line 20 is totally blank on the Form when I look at it using print preview, and thus it's triggering a taxable event...
