You will need to indicate in the program that that is what the distribution is for. See the screen shot below.
You can always withdraw contributions (but not earnings) that
you made to your
Roth IRA tax and penalty free at anytime. Additionally,
the Ordering rules for withdrawals from a Roth IRA are: first from regular
contributions, then from Conversion and rollover contributions, on a first-in,
first-out basis and finally from Earnings on contributions.
Please
note: A qualified distribution from
a Roth IRA is tax-free and penalty-free, provided that the five-year aging
requirement has been satisfied and one of the following conditions is met:
- Over age
59½
- Death or
disability
- Qualified
first-time home purchase
A non-qualified distribution is subject to taxation of earnings and a 10%
additional tax unless an exception applies. For Roth IRAs, you can always remove
post-tax penalty contributions (also known as "basis") from your Roth
IRA without penalty.
When you are entering this
information into TurboTax, your Form 1099-R, box 7 codes J, Q and T identifies
a Roth IRA distribution and determines the tax treatment. If you have a J or a
T, the distribution is considered taxable unless there is an exception.
TurboTax will guide you on all the exceptions.
Please refer to this IRS link for
more information about Roth IRAs:
https://www.irs.gov/publications/p590b/ch02.html#en_US_2015_publink1000231071
