Opus 17
Level 15
Intuit Approved! This answer has been verified for accuracy by an Intuit expert employee

Retirement tax questions

For a Roth IRA, you are considered to withdraw contributions first, conversions second, and earnings last.

 

If you are over age 59-1/2 but the Roth was opened less than 5 years, then withdrawal of contributions and conversions is not taxed at all.  Withdrawal of earnings is subject to income tax but not an additional penalty for early withdrawal.

 

So it depends on how much you contributed over time and how much you withdrew.  You will get a 1099-R in January that you must include as income on your tax return.  Turbotax will ask questions about past contributions, conversions and withdrawals, to calculate if any of that income is taxable. 

 

 

View solution in original post