Hi turbotax community,
I opened the Roth IRA using the mega backdoor approach on 2023. I.e. I contributed after-tax 401k and my employer supports instantly auto-converting that to Roth 401k (i.e. no capital gain during this process). Then I further roll it over to Roth IRA. I have put a few thousands into Roth IRA like this in 2023 and 2024.
In 2024, I withdrawn $100 and cashed out the check. But when I do my tax using desktop Turbotax Premier today, I'm surprised to find it shows I need to pay $10 penalty (I'm under 59 years old). I don't think I should pay penalty because I didn't withdraw the earning part.
Does anyone know what might be missing? I got two 1099R, one for the rollover with code G, and one for the $100 early withdraw with code J. I'm also surprised that turbotax didn't ask me to input all my Roth IRA roll over history (because if I understand correctly, if I rolled over $5k in total via mega backdoor in the past, then I will be able to early withdraw $5k anytime with no penalty).
Thanks!
