DanaB27
Expert Alumni

Retirement tax questions

You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. 

 

You are withdrawing only your contributions and therefore it won't be taxable and is not subject to the 10% penalty. When you take an early nonqualified distribution from a Roth IRA you will report this on Form 8606 part III. 

 

Next year in TurboTax when you get the 2025 Form 1099-R with code J for the $18,000 distribution you will follow these steps:

 

  1. Click on "Search" on the top and type “1099-R” 
  2. Click on “Jump to 1099-R” and enter all your 1099-Rs
  3. Click "Continue" on the "Review your 1099-R info" screen after you added all you Form 1099-R
  4. Answer "Owned Any Roth IRA for Five Years?" screen
  5. Continue through the questions and make sure you enter the net contributions prior to 2025 on the "Enter Prior Year Roth IRA Contributions" screen (you will include the excess contribution amount from 2021 - 2023).

 

@ETFtrader 

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