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dandtarthur
New Member

Both my wife and I are passes 65 . aren't we passed early retirement age?

Both my wife and I are passed 65....   Aren't we pause early retirement age?
5 Replies
VolvoGirl
Level 15

Both my wife and I are passes 65 . aren't we passed early retirement age?

Yes.  What is the problem?  Social Security can still be taxable at any age.

SweetieJean
Level 15

Both my wife and I are passes 65 . aren't we passed early retirement age?

Normally, yes.  Why are you asking?  Retirement distributions are still taxable in most cases, just not subject to a penalty for early withdrawal.

dandtarthur
New Member

Both my wife and I are passes 65 . aren't we passed early retirement age?

The Turbo Tax program is taxing my wife on a Roth IRA    She is 66 years old

fanfare
Level 15

Both my wife and I are passes 65 . aren't we passed early retirement age?

you must hold the Roth IRS for five years.

After that, nothing is ever taxed coming out of a Roth IRA.

'IRS doesn't care about "early retirement"

Age 59 1/2 is the age at which  early withdrawal penalty stops.

 

If you took Roth money out in 2020 and you see tax,

you have to tell TurboTax more, like how long you had the IRA and how much you put in previous to the withdrawal.

 

DMarkM1
Expert Alumni

Both my wife and I are passes 65 . aren't we passed early retirement age?

There are two requirements for tax free Roth IRA withdrawals. It sounds like your spouse may not have owned the Roth account more than 5 years.  The 1099R for the distribution shows the taxable amount in box 2a and the box 11 shows the first year of contribution.

 

1.  Must be over age 59 1/2 

2. Must have owned the Roth over 5 years.  

 

If the taxpayer meets the age requirement, but has not owned the Roth account more than 5 years then the penalty does not apply, but they will pay taxes on the part of the withdrawal that is earnings.  

 

If the taxpayer does not meet both of these requirements they will pay tax on the earnings withdrawal and a 10% early withdrawal penalty.


 

 

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