@sangwooc1 - This is a 2 year old post - it is usually better to ask a new question.
Just enter the 1099-R when you get it. If you just took a normal distribution the anything in excess of your contribution will be taxable. If your $4,000 contribution had $40 of gain then you should have had $4,040 returned. The $4,000 contribution will offset the $4,000 contribution leaving $40 as the taxable amount plus a 10% early distribution penalty of $4.00.
The $400 withheld in box 4 on the 1099-R will add to all other withholding to offset the tax on the $44.00 taxable amount. Anything is excess will be a refund.
You can always withdraw your own Roth contributions tax and penalty free.
Enter a 1099-R here:
Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
One of the followup questions will ask for your prior year contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
