Your code in box 7 indicates that the distribution was from a Roth IRA. If you are under 59 1/2 you will have code J in box 7. You can withdraw contributions you made to your Roth IRA anytime, tax- and penalty-free. Please make sure you enter your net contributions prior to 2024 in the follow-up questions.
- Click on "Search" on the top and type “1099-R”
- Click on “Jump to 1099-R” and enter all your 1099-Rs
- Click "Continue" on the "Review your 1099-R info" screen after you entered all you Form 1099-R
- Answer "Owned Any Roth IRA for Five Years?" screen
- Continue through the questions and make sure you enter the net contributions prior to 2024 on the "Enter Prior Year Roth IRA Contributions" screen
- On the "Any Roth IRA Conversions?" screen answer "Yes" if you made conversions before 2024
- Continue through the questions.
Please note if you withdraw earnings from the Roth IRA then these will be taxed at your tax rate plus the 10% penalty. The distribution from the traditional IRA is taxed at your tax rate plus the 10% early withdrawal penalty. Therefore, your withholdings might not cover all of the tax due depending on your tax bracket.
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