Any statement that a particular Roth IRA custodian might make about the taxability of an early Roth IRA distribution depends on unsubstantiated information provided to the custodian by the participant. Because it is impossible for the custodian to substantiate the information provided by the participant, the custodian is required to report early-distributions from a Roth IRA using code J. It's entirely the responsibility of the participant to provide proper reporting on Forms 8606 and 5329 to show to the IRS the amount of the early distribution that is subject to tax and penalty.
