turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
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.

For the "Roth IRA contributions/distributions prior to 2018" blank, since contributions to Roth IRAs are pre-taxed, why am I paying so much for early withdrawals from it?

 
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.

3 Replies

For the "Roth IRA contributions/distributions prior to 2018" blank, since contributions to Roth IRAs are pre-taxed, why am I paying so much for early withdrawals from it?

You can always withdraw your own Roth contributions tax and penalty free.

Enter a 1099-R here:

Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).

OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.

Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.

[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]

One of the followup questions will ask for your prior year** contributions not previously withdrawn. Those contributions that still remain in the Roth will not be taxed or subject to a early withdrawal penalty. That will add a 8606 form to your tax return with the Roth contribution and tax calculation in part III.

Note: **Prior year - any 2018 Roth contributions should be entered into the IRA contributions section. They will not show up in the prior years contributions but will be accounted for on the 8606 form that calculates the taxable amount.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
ceruhl63
New Member

For the "Roth IRA contributions/distributions prior to 2018" blank, since contributions to Roth IRAs are pre-taxed, why am I paying so much for early withdrawals from it?

If you make withdrawals from IRA's before the age of 59 1/2 you are penalized heavily for withdrawing money. If you withdraw at retirement age and they are pre-taxed there shouldn't be taxes taken.

For the "Roth IRA contributions/distributions prior to 2018" blank, since contributions to Roth IRAs are pre-taxed, why am I paying so much for early withdrawals from it?

@ceruhl63 -  You are *never* taxed or penalized for withdrawing your own Roth IRA contributions as my answer above says.

Read the IRS regulations for Roth IRA distributions.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p590b">https://www.irs.gov/publications/p590b</a>
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies