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?
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)