DanaB27
Expert Alumni

Retirement tax questions

1. You only enter the earnings because only the earnings are taxable income and are listed on Form 5329 line 1. Also, line 2 states “Early distributions included on line 1 that are not subject to the additional tax” Therefore, you only need to enter the earnings on the "Did you use your IRA to pay for any of these expenses?" screen.

 

2. No, the IRA/SIMPLE/SEP box isn’t checked for a Roth IRA distribution. Yes, you will need to enter Payer name, address, and Fed ID number. Check with the financial institute if you do not know this information.

 

3. Both options are correct but I prefer to enter the $6,770 as contributed and then the $220 as withdrawn before the due date. 

 

@kllesser 

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