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farmaholic
New Member

Credit for roth IRA contributions. I withdrew my contributions

I have been contributing to a Roth IRA for a few years now.  I contributed $4000 total to it.  I stopped contributing around June 2018.  This year, March 2019 I withdrew all $4000 but left whatever earnings I made in the account to avoid paying taxes and penalties.  I am now trying to answer a question on TurboTax related to getting a credit for retirement savings contributions.  It asks to enter any distributions i received from retirement plans before the due date of 2018 tax returns.  Must I report my $4000 distribution from March 2019 if this is only contribution money?

1 Reply
Hal_Al
Level 15

Credit for roth IRA contributions. I withdrew my contributions

Yes.

This has nothing to do with tax, on the distributions; but whether you qualify for the credit. Any distribution, taxable or not, disqualifies you from the credit (you can't take money out and get a government credit for essentially putting the same money back in)

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