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posted May 31, 2019 11:39:55 PM

For Traditional IRA we used $10 K for First Time Homeowners (deducted $1,500 in taxes). We also withdrew IRA Roth Contributions. How do I document this?

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1 Best answer
Level 15
May 31, 2019 11:39:56 PM

You will enter each 1099R in TurboTax as separate transactions as they are.

I assume these are both early withdrawals (prior to age 59 1/2).  The distribution will all  be taxed on the traditional IRA, while $10,000 may be excluded from the 10% penalty.

You will credit for the $1,500 which should be on Box 4 of that 1099R.

On the Roth: 

 If the withdrawal is made before age 59 and 1/2 and is only up to the amount that has been contributed to the Roth IRA then no income tax is charged.

To enter each of these in TurboTax.

To enter pension and annuity Payments (1099-R)

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
  • Carefully answer the questions, and it will appear you are finished on the Traditional, but keep going as it will ask about the First Time Homebuyer Exception. 

1 Replies
Level 15
May 31, 2019 11:39:56 PM

You will enter each 1099R in TurboTax as separate transactions as they are.

I assume these are both early withdrawals (prior to age 59 1/2).  The distribution will all  be taxed on the traditional IRA, while $10,000 may be excluded from the 10% penalty.

You will credit for the $1,500 which should be on Box 4 of that 1099R.

On the Roth: 

 If the withdrawal is made before age 59 and 1/2 and is only up to the amount that has been contributed to the Roth IRA then no income tax is charged.

To enter each of these in TurboTax.

To enter pension and annuity Payments (1099-R)

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Retirement Plans and Social Security
  • On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button
  • Carefully answer the questions, and it will appear you are finished on the Traditional, but keep going as it will ask about the First Time Homebuyer Exception.