I opened a roth IRA 2 years ago, I deposited 5,500 in 2016 and 5,500 in 2017, this year I withdrew 6,000 for my wedding. The way I understand the rules of early withdrawals on roth iras is that I can withdraw any part of my basis (not earnings) at any time without penalty or taxes, am I wrong about this?, Vanguard sent me a 1099R with J code which suggest taxes and penalties. how do file in Turbotax? do I need to file a 5329 to explain my exemption? I never really understood the 5 year holding period, I thought that it really applied to earnings (not basis), If my withdrawal is not a legal distribution, I should not be taxed on money I paid taxes on, only the 10% penalty righ?
