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Retirement tax questions
Whether taxable or not, the distribution must be represented on your tax return. If you received a nonqualified distribution (before age 59½ or it had been less than 5 years since the beginning of the year for which you first made a Roth IRA contribution), TurboTax will include the gross amount of the distribution on Form 8606 Part III to determine the taxable amount of the distribution by subtracting contribution basis and conversion basis. IF the distribution is a qualified distribution, the distribution is automatically nontaxable and no Form 8606 Part III is to be prepared. Either way, TurboTax will include the gross amount on Form 1040 line 4a but exclude the nontaxable amount from line 4b.
November 20, 2024
7:41 AM