You are correct. If your Roth distribution is less than your total contributions to the account, then there would be no taxes or penalty.
The piece that is missing in order to determine whet...
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You are correct. If your Roth distribution is less than your total contributions to the account, then there would be no taxes or penalty.
The piece that is missing in order to determine whether the distribution should be taxable is the basis in the Roth IRA. If you do not see a question about the basis in the Roth IRA as you enter the Form 1099-R for the distribution, then use the instructions below to be sure to enter that information into your tax return.
Go to Deductions and Credits > Retirement and Investments > Traditional and Roth IRA Contributions.
This will bring you to a screen with checkboxes to indicate what types of accounts you had in 2025. Be sure that Roth IRA is checked. Click Continue.
If Traditional IRA is checked or if you have a spouse that had either type of account, the next questions will not pertain to your Roth IRA. Continue through this section until you are asked whether you made any contributions to your Roth IRA for 2025. This is the beginning of the section where you will enter details about your Roth IRA, including the basis.
Continue answering the questions according to your situation. On the screen where you see Let Us Track Your Roth IRA Basis, click Yes.
Then, on the screen titled Enter Prior Year Roth IRA Contributions, this is asking for your total contributions for years prior to 2025 (basis). If your basis exceeds your distribution, then the distribution will not be taxable. If the distribution exceeds your basis, then the excess will be taxable.