cacanino
New Member

TT is assessing a penalty for a contribution only withdrawal from Roth IRA

Good evening.

i withdrew $12000 from a Roth IRA (contribution only withdrawal) in 2024. I was understanding that since this is “after tax” and not earnings, there would be no tax liability or penalty. Line 7 shows distribution code of “J” meaning early distribution.  But TT is assessing a 10% penalty anyway. Any ideas on how to correct this?

Thanks!