For Roth IRAs, you can always withdraw post-tax contributions (also known as "basis") from your Roth IRA without penalty.
When you get to the screen that titled "Enter Prior Year Roth IRA contributions", make sure you are entering the total amount of all your previous Roth contributions. (see screenshot) So if you contributed $20,000 to your Roth IRA in prior years, you will put $20,000 in the amount box on this screen.
You can always withdraw contributions (but not earnings) that you made to your Roth IRA tax and penalty free at anytime. Additionally, the ordering rules for withdrawals from a Roth IRA are: first from regular contributions, then from conversion and rollover contributions, on a first-in, first-out basis and finally from earnings on contributions.
When you are entering your Form 1099-R information into TurboTax, Box 7 codes J, Q and T identify a Roth IRA distribution and determine the tax treatment. If you have a J or a Q, the distribution is considered taxable unless there is an exception. TurboTax will guide you on all the exceptions.
Please refer to this IRS link for more information about Roth IRAs:
https://www.irs.gov/publications/p590b/ch02.html#en_US_2015_publink1000231071
To enter your 1099- R in TurboTax Online or Desktop (you may need to upgrade to report these distributions), please follow these steps:
- Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages and Income” ("Personal Income" in TurboTax Home & Business)
- Next click on "jump to full list" or “I’ll choose what I work on”
- Scroll down the screen until to come to the section “Retirement Plans and Social Security”
- Choose "show more", then IRA, 401(k),Pension Plans (1099-R) and follow the onscreen instructions
Please note that all distributions will be reported on your tax return (whether or not they are taxable) on Form 1040 on line 15(a) (or 16(a) but only the taxable portion will show on your return as taxable on line 15(b) (or 16(b)).
