I took a full distribution of my only Roth IRA in 2017 and
closed it after taking the distribution.
This account has been open since prior to 2001. It bounced around between several managing
companies before landing at Wells Fargo Advisors. It has basically been dormant with no
activity for as long as I can remember, no contributions, no withdrawals, just
minor fluctuations depending on how WF decided to manage it. I basically ignored it for many years. Last December, 2017, I pulled all the money
out and closed it in order to pay off some debt and better myself for an
upcoming construction loan. I was informed that I would most likely be facing a
10% penalty due to not meeting any of the IRS qualifications for penalty free
withdrawal.
I received a 1099R from WF, and followed all the TurboTax
prompts and questions. After completion
of the 1099R import and continuing down the questions, I get to the following
questions and my answers:
- Did you own any Roth IRAs for at least 5 years? –
Yes, I did.
- Was your Roth IRA open on December 31, 2017 –
No, it was closed prior to that date when I took full distribution.
- Withdraw from your Roth IRA before 2017? – No, I
did not make any withdrawals prior to 2017.
- Enter prior year Roth IRA contributions: - Here is where I have problems.
My 1099R only has a number in box one. Box 2A is empty, and 2B is checked for “Taxable
amount not determined” and “Total Distribution”. I believe what I need to know here is my
basis, but I don’t know this number, WF online documentation only goes back to
2011, and a phone call to WF only got another answer of unknown. I need to answer this question, or the full
amount of my distribution gets counted as taxable income, which is incorrect
for a Roth IRA. What should I say here, knowing
that I can not pull records from prior to 2011?
Should I give my end of year 2016 balance, and state that as all
contributions prior to 2017? If I use
the same number as in block 1 on my 1099R, there is no 10% penalty assessed,
most likely because I stated that my Roth is over 5 years old. Would that be correct?
