For someone over age 59½, the net income distributed with the returned Roth IRA contribution is still taxable but is not subject to an early-distribution penalty. Because a return of contribution from a Roth IRA includes code J in box 7 to indicate that it is from a Roth IRA, someone over age 59½ at the time of the distribution must claim an Other reason exception on Form 5329 for the amount of taxable net earnings (the amount on box 2a of the Form 1099-R) that were distributed.
