BillM223
Expert Alumni

Retirement tax questions

After you enter the data for the 1099-R, continue. 

 

The next screen probably asks about disaster distributions. Answer No (unless it is) and continue.

 

The next screen will probably ask you "Owned Any Roth IRA for Five Years?"

 

Answer Yes, and then continue where you need to keep answering stuff.

 

The first is were any Roth IRAs open on 12/31/2020. I presume that this is to establish that you didn't close the Roth IRA(s) in 2013.

 

The next is to ask if you withdrew from the Roth IRA before 2020. This question goes with the next one which asks how much you contributed to the Roth IRA(s) before 2020.

 

In other words, it is trying to establish that you are still withdrawing your basis (which is tax-free).

 

Then there are a few more questions, and if all goes well, the distribution will be tax-free (not on line 4b on the 1040).

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