CatinaT1
Employee Tax Expert

Retirement tax questions

You are correct that a 1 is for early distribution. The B means it came from a Roth IRA. The taxable amount would be $0 since it came from a Roth account, but since it was an early distribution, you will see a 10% penalty for early withdrawal calculated on Form 5329.

 

Topic No. 557 Additional Tax on Early Distributions From Traditional and Roth IRAs

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