- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Retirement tax questions
Your $1,900 Roth IRA distribution is not subject to tax or penalty.
1. If the basis in your Roth IRA contributions was more than $1,900, you should not have had any tax or penalty on that amount in the first place. Make sure that you have clicked the Continue button on the Your 1099-R Entries page and have entered your basis in Roth IRA contributions and conversions.
2. It is correct that tax and penalty disappeared when you entered the code H Form 1099-R. The amount (apparently more than $1,900) in box 5 of the code H Form 1099-R became contribution basis in your Roth IRAs. This basis was applied against your code J distribution to make it nontaxable and therefore not subject to early-distribution penalty.
3. Your traditional 401(k) to traditional IRA rollover has no bearing on #1 or #2 above.