Hi,
I am drafting my 2020 tax filing using TurboTax. I have received 1099-R from my brokerage due to full withdrawal/distribution of my (rolled-over) Roth IRA in the first quarter of 2020, my one and only Roth IRA. Full withdrawal/distribution with an amount of 39,150.50, less the taxes that I've asked for (about 5,800 for federal and 3,300 for state), and the Roth IRA account is still open with a zero balance (as of today). This Roth IRA was opened November 2019 as a result of rollover from an after-tax/Roth-based 401k (laid off from the company) with a rollover amount of 39,028.43 (this is the total rollover contributed amount). I had the after-tax 401k for 17 years and I'm under 59 1/2 years old.
I think I should not be paying additional taxes for the Roth IRA withdrawal since it was a rollover, except probably for the 10% early withdrawal penalty and the earnings of 122.07 since the time the Roth IRA was opened and the time of withdrawal. I think I may be doing something wrong with the data inputs I am supplying to TurboTax.
My questions are:
1. Am I correct that I should not be paying additional taxes for the Roth IRA withdrawal and should I have to pay for the 10% early withdrawal as well?
2. There was a question about the Roth IRA if it's more than 5 years. I've chosen less than 5 but should I consider it as more than 5 since it was a rollover from an after-tax 401k which I had for 17 years?
3. In the TurboTax Premium, there was a question about "net contribution to Roth IRA prior to 2020" (i.e. I think it was referring to 2019 and earlier). Does this refer to that rollover contribution amount of 39,028.43?
Thanks for the help and clarifying my questions.
