@taxesohmy2017 wrote:
Just want to make sure I understand this correctly.
So I add up all my contributions (contributions were made in 2017 and 2018)
$150+4941=$5091
then I subtract $3700 from my distribution in 2018 leaving me with $1391.00
then I add my ROTH conversion I made in 2018 of $5014.00
so then I add 1391+5014 = 6405
In 2019 I took $7973 I subtract that from $6405 and my taxable income would be $1,568
Is this correct?
Do I calculate 10% penalty since I am under 59 1/2 and did not hold the account more than 5 yrs?
Not exactally. Do not include conversions when it asks for prior year contributions. The next screen will ask about conversions. The 10% penalty applies if you are under age 59 1/2 and withdrew any earnings or conversions that were not on the Roth for 5 years. Each conversion has it's own 5 year clock so the interview will ask the year of the conversion.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
