Son contributed $1657 to Roth 401k at work 2021-2023 and $39 in 2024. These are his only Roth 401k/Roth contributions ever. In 2024, employment ended and he rolled over all of this $ to a Roth at a brokerage. The shares had lost some value so the amt rolled over was $1508. He also rolled over his Employee Deferred account from the same employer. He had contributed $54 and the employer matched $83 (this actually was the match for Deferred and 401k but they put it all in Deferred). Total rollover value for the Deferred account was $128. This went into a Traditional IRA at the brokerage and as soon as it cleared, we converted it to Roth. In 2024, he took a $300 withdrawal from the Roth at the brokerage to pay his bills. This is the only w/drawal he's ever done from a Roth. He had an Roth open on 12-31-24 and had IRAs less than 5 yrs.
I have entered all this info, but there appears to be something wrong on the IRA form worksheet. The values of $1657 (Line 23), $39 (Line 33), $1508 (Line 34), $128 (Line 35), $300 (Line 38), and $128 (line 59) all appear to have correctly carried over onto the worksheet. However, the number for Line 6 shows $3204 ($1657,+$1508,+$39). This doesn't seem right since the $1657+$39 (contributed) and $1508 (what contributed $ was worth when rolled to Roth) are the same $.
A similar problem appears on Line 51. It shows $2904, which appears to be $1657 (his contribution at work 2023 & prior)+$39 (his contribution at work 2024)+$1508 (the amt of the $1657+$39 that was rolled over from 401k Roth to Roth-lower than what he put in due to loss of share price)+ $300 he withdrew.
In both places (and also Line 22 on Form 8606), it seems to be counting his contributions twice. Once when he contributed them from his paycheck and then again when his job ended and he rolled that money to a brokerage Roth (with a little loss in principal due to market variation). It looks like one problem on the IRA Worksheet may be the $1508 should come off on line 60, but it isn't. How do fix these amounts in all three places? Thank you for any and all help!
Also, it is showing that the $300 he took out of the Roth is not taxable and no penalty. It is withdrawal from contribution (not earnings) so no tax, but should there be penalty?
Arches
