@gagan5987 wrote:
By mistake, I opened a ROTH IRA account and made 1000 dollar contribution in 2020 and then realized the mistake and close the account. at the time of withdrawal amount is 1045.26.
I received 1099 R from a broker and it mentioned
Column 1 Gross distribution is 1045.62
Column 2 Taxable amount Blank
Column 2b Checked (Taxable amount not determined)
Column 7: Code is J (indicates that there was an early distribution from a ROTH IRA. )
Now Turbotax is adding a tax on the whole amount. please suggest me.
I have Tubo Premier desktop version 2020
and the taxable amount is blank.
You should have requested a "return of contribution" and your 1099-R would have a code 8J, but just enter the 1099-R you have. A $1,000 is your own contribution that is not taxable but the $46 is taxable and also subject to a 10% penalty ($4.60 - rounds to $5) if you are under age 59 1/2.
**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.**
