From my understanding, contributions to a Roth IRA can always be withdrawn tax-free and penalty-free, regardless of the 5-year rule, since they’re made with after-tax dollars. However, TurboTax is calculating $150 as a tax liability for this withdrawal.
Here’s what I’ve done so far:
I entered my 1099-R correctly. Box 7 shows a "J" code.
I entered my Roth IRA contribution history, but TurboTax only asked for contributions before 2024, and I cannot specify my 2024 contribution.
I selected "I did something else" when asked about rolling over the funds since this was a withdrawal, not a rollover.
