turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

efpb4732
New Member

Do I need to pay taxes on a withdrawal from a roth IRA if I withdrew money I put in when converting from company roth 401 k to the roth IRA

 
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
dmertz
Level 15

Do I need to pay taxes on a withdrawal from a roth IRA if I withdrew money I put in when converting from company roth 401 k to the roth IRA

Assuming that you had investment gains in your Roth 401(k), it's likely that only some of the amount rolled over to your Roth IRA, the amount shown in box 5 of the Form 1099-R reporting the distribution from the Roth 401(k), became contribution basis in your Roth IRA.  Unless your distribution from the Roth IRA is a qualified distribution, only the amount of your Roth IRA distribution up to your contribution basis is tax free.

(Don't refer to the movement of the funds from the Roth 401(k) to the Roth IRA as a "conversion."  The term 'conversion' is used to refer to a distribution from a traditional IRA that is rolled over to a Roth IRA.)

View solution in original post

1 Reply
dmertz
Level 15

Do I need to pay taxes on a withdrawal from a roth IRA if I withdrew money I put in when converting from company roth 401 k to the roth IRA

Assuming that you had investment gains in your Roth 401(k), it's likely that only some of the amount rolled over to your Roth IRA, the amount shown in box 5 of the Form 1099-R reporting the distribution from the Roth 401(k), became contribution basis in your Roth IRA.  Unless your distribution from the Roth IRA is a qualified distribution, only the amount of your Roth IRA distribution up to your contribution basis is tax free.

(Don't refer to the movement of the funds from the Roth 401(k) to the Roth IRA as a "conversion."  The term 'conversion' is used to refer to a distribution from a traditional IRA that is rolled over to a Roth IRA.)

Unlock tailored help options in your account.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question